Medicine Hat News

Bombardier won’t be shocked by another high CSeries duty next week

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MONTREAL Bombardier Inc. says it won’t be shocked if it gets hit with another large tariff next in a U.S. duty decision Wednesday after being surprised by massive preliminar­y duties unveiled against its CSeries commercial jet earlier this week.

The Montreal-based aerospace company (TSX:BBD.B) said Thursday it is prepared for an “absurd” anti-dumping duty after the Department of Commerce announced a nearly 220 per cent countervai­ling duty.

“We expect it to be a significan­t number. Pick a number. It makes no sense,” Colin Bole, Bombardier’s sales chief for commercial aircraft, said in an interview.

“I think the Department of Commerce and Boeing have not exactly endeared themselves with a rational and sensible approach here.”

The U.S. government is scheduled to announce its preliminar­y anti-dumping decision on Boeing’s petition next Wednesday. The Chicago aircraft manufactur­er has requested 79 per cent in antidumpin­g, the same amount it requested in countervai­ling duties.

“We thought 79 was pretty outrageous, this is beyond silly,” he said of the 220 per cent countervai­ling decision.

The department’s preliminar­y findings said Bombardier benefited from improper government subsidies, giving it an unfair advantage when selling its CSeries jets south of the border.

Bombardier has repeatedly stressed that Americans will be hurt by the tariffs because more than half the content on the CSeries is sourced by U.S. suppliers, including Pratt & Whitney engines. The program is expected to generate more than US$30 billion in business over its life and support more than 22,700 American jobs in 19 states.

Bole said the exorbitant duties are unfounded and the company is confident they will be reversed in final decisions in coming months. He said Boeing can’t justify its claim of being harmed since it doesn’t make a plane the size of the CS100.

Air Canada CEO Calin Rovinescu lent his support to the company, telling the Montreal Board of Trade on Thursday that he found the ruling “troubling” because of its effect on stifling innovation and competitiv­eness.

Canada’s largest airline has ordered 45 CSeries aircraft with options for 30 more that will allow it to fly to new destinatio­ns after deliveries begin in 2019.

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