Boeing attack on C-Series unjustified, hypocritical

Bombardier must be allowed to sell its products freely in the U.S., David Chartrand argues.

Tension is mounting in the conflict between Bombardier and U.S. aerospace giant Boeing.

In May, Boeing asked the International Trade Commission and the U.S. Department of Commerce to look at Bombardier’s sale of 75 C-Series aircraft to Delta Air Lines and urged the U.S. government to impose disproportionate and unjustified tariffs against our flagship product.

Over the past few days, the heartfelt interventions of the prime ministers of Canada and Britain as well as the protests of hundreds of aerospace industry employees have prompted Boeing to promote itself as a major contributor to the Canadian economy, and to publicly justify what led it to attack the C-Series.

But Canadians — and a growing number of Britons and even Americans — understand that in order to thrive, the aviation industry must rely upon fair competition and encourage innovation, while Boeing does the opposite by taking advantage of a special political climate to close the U.S. market to the jewel of our industry: the C-Series.

Contrary to what Boeing claims, this action is not a commercial dispute. It is an attack on Canada’s economy and our country’s right to develop its own policies and to support key sectors that create jobs within recognized and agreed-upon international trade rules.

There is no doubt that Boeing’s investments in Canada are significant, as are Bombardier’s investments in the U.S. Today, Bombardier has close to 7,000 direct employees among our neighbours to the south.

The C-Series program is expected to generate more than $30 billion in business for U.S. suppliers and support more than 22,700 jobs in the United States.

Designing, building and maintaining state-of-the art aircraft requires a diverse and highly skilled workforce. The aerospace industry is built around a global supply chain, and few countries have such a close trade and investment relationships as Canada and the U.S. It is to be hoped that this will continue.

Unfortunately, Boeing is challenging and putting this favourable climate for job creation and innovation on both sides of the border at risk with a full-on attack that aims at nothing less than to shut the U.S. market to the C-Series. Boeing’s alleged commitment to Canada is inconsistent with the aggressiveness it has used in going after Bombardier.

This could mean serious consequences for thousands of good jobs in the Canadian aerospace industry.

Boeing’s tariffs demand is unjustified and hypocritical. Boeing was not in the running for the Delta order.

It does not build an airplane the size Delta wanted.

In addition, the launch pricing it complains about is something that Boeing itself does. When it launched its 787, it sold hundreds of them below cost, including here in Canada.

Boeing receives billions of dollars in aid from the U.S. government, notably thanks to the lucrative military contracts awarded to it year after year. What we have here is an example of a double standard.

Without the U.S. government’s protection, Boeing claims it will suffer substantial damage, but it is hard to square this claim with Boeing’s record profits and enormous backlog.

With more than 41,000 planes to be delivered over the next 20 years, according to Boeing’s own market forecasts, the pie is large enough to feed many players.

If Boeing wishes to continue to benefit from its investments in Canada and the opportunities offered by the Canadian market (which we also want), it should withdraw its complaint and allow Bombardier to continue to sell its products freely in the United States. It is a winning solution, and the only one that will restore fair competition between aircraft manufacturers and preserve the thousands of jobs that depend on the aviation industry on both sides of the border.