Bombardier brushes off Boeing dispute
‘It’s not going to slow us down’ at Paris Air Show
Bombardier Inc.’ s head of t he CSeries program brushed off concerns about the ongoing trade dispute with rival Boeing Co. and said it is focused on selling its CSeries jets to airlines around the world despite low expectations for orders in the lead- up to the Paris Air Show.
Fred Cromer, the president of Bombardier’s commercial aircraft division, said Thursday while he expects to answer many questions at the Paris event about Boeing’s anti- dumping and countervailing duty complaint and subsequent i nvestigations i nto t he CSeries aircraft, he is not concerned over sales prospects or the program losing momentum.
“The complaint is a detractor, but it’s not going to slow us down,” Cromer said in a call with reporters.
“We sort of view this complaint as a way to stifle innovation and direct people toward existing products that don’t deliver the same economics and the same su- perior performance in this size aircraft that we’re delivering.”
Last week, the U. S. International Trade Commission voted to continue its investigation into Bombardier’s trade practices, deciding there was “reasonable indication” that Boeing has been threatened with material injury as a result of Bombardier’s alleged sale of subsidized jets for less than fair value.
At the same time, the U. S. Department of Commerce is investigating whether preliminary duties should be imposed on imports from the Quebec-based company.
Next week, Bombardier will be showcasing airBaltic’s new CS300 aircraft at the 2017 Paris International Air Show, widely considered one of the most significant industry events for commercial aircraft manufacturers. The company’s last major order for a CSeries aircraft, optimized for the 100- to 150- seat market segment and pitched as a more fuelefficient jet, was last June.
Walter Spracklin, an anal yst with RBC Dominion Securities, said in a note to clients Thursday that the CSeries remains the key driver of interest on Bombardier shares, but that order expectations are “muted.”
“We remain of the view that the fate of ( Bombardier’s) shares, in the near term, ultimately lie with the fate of the CSeries,” he wrote.
“While we have muted expectations on the CSeries order front in Paris, we believe interest levels will again be piqued. And should we see an improved sales campaign outlook heading out of Paris, we believe we will see a boost in sentiment, and as such, a positive catalyst for ( Bombardier’s) shares in the near term.”
The c ompany’s s t ock closed at $ 2.43 Thursday on the Toronto Stock Exchange, up 0.4 per cent for the day and 12.5- per- cent higher year-to-date.
While Cromer would not speculate as to whether the company i s going to announce new orders next week, he said the focus at the air show is to continue generating interest in the CSeries aircraft.
Meanwhile, the company is moving ahead with plans to ramp up production of the jetliner.
“While the market may be a little soft, the amount of interest is certainly growing and it actually matches up very well with our ramp- up, because we really don’t have a significant number of open delivery positions, given the orders that we have for another two to three years out,” he said.
“I think it’s a perfect scenario for us to continue to expose the airplane and continue these conversations. The momentum is still very strong.”
PERFECT SCENARIO FOR US TO ... EXPOSE THE AIRPLANE.