Delta says Cseries de­liv­er­ies may be de­layed but not killed by du­ties

The Telegram (St. John’s) - - CANADA -

Delta Air Lines says its de­liv­er­ies of Bom­bardier Cseries air­craft may be de­layed next year but that ul­ti­mately it won’t be forced to pay the 300 per cent pre­lim­i­nary du­ties re­cently an­nounced by the U.S. Com­merce De­part­ment.

“We will not pay those tar­iffs and that is very clear,” CEO Ed Bas­tian said Wed­nes­day dur­ing a con­fer­ence call about its third-quar­ter re­sults.

He said the U.S. gov­ern­ment’s de­ci­sion is dis­ap­point­ing and doesn’t make a lot of sense, but that it’s still early in the process that is trig­ger­ing lots of po­lit­i­cal de­bate.

“We in­tend to take the air­craft,” he told an­a­lysts. “I can’t tell you how this is go­ing to even­tu­ally work out. There may be a de­lay in us tak­ing the air­craft as we work through the is­sues with Bom­bardier, who is be­ing a great part­ner in this.”

Bas­tian added that he thinks the Cseries needs to come to mar­ket in the United States.

“We be­lieve it will come to mar­ket and we be­lieve Delta will get it at the agreed con­trac­tual price,” he added.

Delta signed a deal for up to 125 CS100S in 2016. The firm or­der for 75 air­craft had a list price of US$5.6 bil­lion, although large or­ders typ­i­cally se­cure steep dis­counts. De­liv­er­ies were sched­uled to be­gin in the spring.

“We’re not go­ing to be forced to pay tar­iffs or any­thing of the ilk, so there should not be any con­cerns on our in­vestors’ minds in that re­gard.”

The com­ments from the largest Cseries cus­tomer come a day af­ter U.S. aero­space gi­ant Boe­ing launched a pub­lic re­la­tions cam­paign to re­mind Cana­di­ans of its eco­nomic con­tri­bu­tion to the coun­try.

The Chicago-based com­pany said its mul­ti­me­dia ef­forts, which got un­der­way on Tues­day, in­clude tra­di­tional and dig­i­tal me­dia in­clud­ing tele­vi­sion, ra­dio and other dig­i­tal plat­forms.

Boe­ing Canada man­ag­ing di­rec­tor Kim Westen­skow said the com­pany con­trib­utes about $4 bil­lion an­nu­ally to Canada’s eco­nomic growth and de­vel­op­ment. That rep­re­sents al­most 14 per cent of Canada’s en­tire aero­space eco­nomic im­pact.

“What we ac­com­plish to­gether ben­e­fits Canada and the en­tire global aero­space in­dus­try. It is a com­pelling story that is over­due to be told,” she said in a news re­lease.

Boe­ing said it works with 560 Cana­dian sup­pli­ers that sup­port 17,500 jobs, along with 2,000 peo­ple it em­ploys.

It said the com­pany’s part­ner­ship dates back a cen­tury when founder Bill Boe­ing launched the world’s first in­ter­na­tional mail ser­vice be­tween Van­cou­ver and Seat­tle in a Boe­ing C-700.

“To­day, Boe­ing is the largest non-cana­dian aero­space man­u­fac­turer in Canada,” Westen­skow added, point­ing to both com­mer­cial and mil­i­tary ac­tiv­i­ties.

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