Airbus deal gives Bombardier a lifeline

STRUGGLING plane maker Bombardier has joined forces with Airbus to dodge crippling tariffs imposed by the Trump administration.

European air giant Airbus has acquired a majority 50.1pc stake in Bombardier’s controversial C-Series jet programme for nothing.

It hopes to safeguard 1,000 jobs at Bombardier’s plant in Belfast, which makes the wings for the jets. By assembling planes in Airbus’s factory in the US, the alliance hopes to dodge 300pc import levies.

But US giant Boeing piled pressure on US authorities to ensure Bombardier cannot use the alliance to avoid swingeing tariffs.

It described the deal as ‘questionable’, while unions fear it could be seen as a deliberate attempt to dodge tariffs, making it vulnerable to a legal challenge.

Bombardier is gambling on Airbus being able to boost its sales and secure parts more cheaply because of its greater financial clout.

The US Department of Commerce decided to impose huge tariffs on Bombardier following a complaint from Boeing that it ‘dumped’ planes in the US market at ‘absurdly low’ prices, and that the Canadian company got illegal state support from Canada and the UK.

Prime minister Theresa May has appealed in vain to Donald Trump to intervene in the dispute, while defence secretary Sir Michael Fallon warned the tariffs could threaten future Ministry of Defence contracts with the US for aircraft such as Boeing’s Apache helicopters.

But with the US administration refusing to back down, Bombardier, trade unions and ministers are now pinning their hopes on this deal with Airbus.

The US Department of Commerce makes its final decision on import duties for Bombardier in February next year.