Boeing's Bombardier Nightmare (excerpt)
(Source: Bloomberg Gadfly; posted Oct 16, 2017)
By David Fickling
What doesn't kill you, makes you stronger. If there's truth in that old maxim, Boeing Co. should be worried about the outcome of its war on Bombardier Inc.

The Canadian maker of trains, planes and transport systems is seeking investors and may consider selling parts of its aerospace business, Eyk Henning, Manuel Baigorri and Frederic Tomesco of Bloomberg News reported Monday, citing people familiar with the matter. It may sell its CRJ and Q400 aircraft units and consider a tie-up with Airbus SE or other aerospace companies, the people said.

Boeing hasn't shied away from this fight. Its claims that Bombardier's C Series jet received unfair subsidies from the governments of Canada and Quebec resulted in the U.S. Department of Commerce slapping import duties of almost 300 percent on the jets this month. As Gadfly's Chris Bryant has written, Boeing's complaints, however justified, reek of hypocrisy in an industry that has benefited from multiple forms of state largess almost since its inception.

The simmering trade war has already led to one own goal, with Canadian Prime Minister Justin Trudeau vowing not to buy Boeing military aircraft unless the case is dropped. The greater risk, though, is that the dispute could be pushing two of the U.S. aircraft maker's emerging rivals into a deepening partnership that will make both stronger. (end of excerpt)

Click here for the full story, on the Bloomberg website.


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