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19 October, 2017 00:00 00 AM
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Boeing could rebut Airbus deal with new plane, partner

AFP

AFP, NEW YORK: Bombardier’s alliance with Airbus creates new hurdles for Boeing, but the US giant could respond by deepening its collaboration with Brazil’s Embraer and launching a new aircraft, analysts say.

The surprise deal with Airbus was designed to let Bombardier proceed with its C Series program and avert draconian US sanctions that had been ordered in a preliminary Commerce Department decision in response to a Boeing complaint.

“Anything that’s good for Airbus is bad for Boeing of course,” said Jim Corridore, an analyst at CFRA Research, summarizing the reaction of many observers to the Airbus-Bombardier venture.

The deal grants Airbus an immediate stake in the program for C Series planes, which carry 100 to 150 passengers.

Airbus will hold a 50.01 per cent stake of the venture and gain key new plane capacity without the normal huge up-front capital outlay, in exchange for using its sales and marketing heft to lift C Series sales.

Boeing for its part said the partnership was a non-event as far as the sanctions case, which is based on the contention that Bombardier received billions of dollars in subsidies from Canadian government officials.

“The announced deal has no impact or effect on the pending proceedings at all,” said Boeing general counsel J Michael Luttig in a statement released by a spokesman.

“Any duties finally levied against the C Series (which are now expected to be 300 per cent) will have to be paid on any imported C Series airplane or part, or it will not be permitted into the country.”

But analysts said Airbus’ entree into Bombardier’s C Series program raised pressure on Boeing.

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Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

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