Boeing won’t back down in standoff with Bombardier and Liberal government
OTTAWA—Boeing Co. has no plans to back down in its trade dispute with Canadian rival Bombardier — a high-stakes, cross-border conflict that the U.S. transportation giant says could have long-term ramifications for the future of the entire aerospace sector.
The potential consequences of the Boeing-Bombardier standoff extend beyond any single deal — especially for Boeing itself, said Marc Allen, president of Boeing’s international division.
“In Canada, we face a situation with a competitor, an emerging competitor, that has, yes, long received government support — but that just went beyond the pale in 2016,” Allen said in an interview with The Canadian Press.
“That aggressive move had to be addressed if we really believe in establishing a global architecture that will create the greatest prosperity for our industry and for us as a company in the long term.”
Boeing triggered the dispute earlier this year when it complained that Montreal-based Bombardier was selling its CSeries passengers jets to U.S.-based Delta Air Lines at an unfairly low price, thanks to loans and grants from both the province of Quebec and the federal government.
When the U.S. Commerce Department and its associated International Trade Commission agreed in May to investigate the complaint, the Trudeau government fired a warning shot, threatening to scrap its multibillion-dollar “interim” plan to buy 18 of Boeing’s “interim” Super Hornet fighter jets.