JetBlue to US: Reject Boeing in Bombardier trade dispute

Bloomberg

JetBlue Airways Corp. is urging US regulators to reject Boeing Co.’s fair-trade complaints against Bombardier Inc. as the New York-based airline considers adding new planes to its fleet.
Boeing’s claim that Bombardier sold its C Series jets in the US at less than fair value thanks to Canadian government subsidies presents “a threat to JetBlue’s ability to continue to innovate and provide benefits to the flying public,” Chief Executive Officer Robin Hayes said in a letter filed with the US International Trade Commission.
JetBlue plans to decide by the end of the year on changes to its fleet, including whether to replace its Embraer SA E190s, possibly with the C Series.
In his letter, Hayes urged the commission “to reject the petitions and permit free and unfettered competition in the aircraft manufacturing sector”.
The C Series is the only aircraft offering five seats abreast, aligning it with JetBlue’s “history of product differentiation,” he said, and has potential to reduce operating costs in line with JetBlue’s low-cost model.
Boeing makes no comparable aircraft, the letter said. JetBlue currently flies planes made by France’s Airbus SE and Brazil’s Embraer. It’s at least the third airline to file a letter in support of Bombardier that doesn’t operate its planes, following Spirit Airlines Inc. and Sun Country Airlines Inc. The letter reflects JetBlue’s general position that competition is good for the airline industry, said Doug McGraw, a spokesman. Boeing had no immediate comment.
The US Commerce Department will release a preliminary ruling on whether to impose countervailing duties on Bombardier. Boeing says Bombardier was able to offer attractive pricing to Delta Air Lines Inc. last year, in a deal for at least 75 aircraft, because of government assistance. Quebec’s provincial government invested $1 billion last year for a 49.5 percent stake in the C Series, and its federal counterpart followed this year with a $301 million financing package for two of Bombardier’s jet programmes, including the C Series.
In June, the US trade commission ruled that Boeing’s commercial jet business may have been harmed by Bombardier.

Business Council of Canada supports Bombardier
Bloomberg

An industry group representing Canadian chief executives is calling on Boeing Co. to scrap its trade challenge against Montreal-based Bombardier Inc.
“Boeing’s petition for duties on Bombardier aircraft is baseless and should be immediately withdrawn,” John Manley, president of the Business Council of Canada, said.
“Canada must stand up to this unprecedented attack on our aerospace industry and the thousands of men and women it employs.”
Manley is weighing in ahead of an anticipated ruling on preliminary duties on the complaint from Chicago-based Boeing. The dispute threatens to divide Canadian industry given the complex supply chains of both firms.
Bombardier is based in Canada, though Boeing drew $2.2 billion in revenue from the country in 2016, compared with $1.3 billion for Bombardier, Bloomberg data show.
Canadian PM Justin Trudeau and UK PM Theresa May
have appealed to US President Donald Trump to intervene in the case.
Boeing has accused Bombardier of using government subsidies to sell its C Series passenger jets at low prices. Trudeau has also said Canada won’t proceed with an acquisition of Boeing F-18 Super Hornets so long as the firm is targeting its Canadian rival.
Bombardier says Boeing has similar “launch pricing” for its new planes as Bombardier does for its new C Series.