U.S. ITC Details Why It Rejected CSseries Duties, Says Boeing Not Hurt (excerpt)
(Source: Reuters; published Feb 14, 2018)
By Allison Lampert, Lesley Wroughton
MONTREAL/WASHINGTON --- An independent U.S. trade body on Wednesday said it rejected hefty U.S. duties on Bombardier’s CSeries jets partly because Boeing lost no sales or revenue when Delta Air Lines ordered the aircraft in 2016 from the Canadian planemaker.

The International Trade Commission published its reasoning three weeks after announcing the decision.

The ITC said the 110-seat CSeries jets ordered by Delta and Boeing Co’s smallest 737 MAX 7 plane do not compete. It also said Bombardier Inc’s CSeries sale to Delta did not come at Boeing’s expense as the planemaker did not offer any new aircraft to the No. 2 U.S. carrier.

“Boeing lost no sales or revenues,” the ITC said in its 194-page ruling.

“The higher standard seating capacity of the 737-700 and 737 MAX 7 limits competition between those models and the CS100 for some purchasers,” it said.

It was not yet clear whether Boeing will seek to appeal the ITC’s decision, a move that could generate uncertainty at a time when the U.S. planemaker’s European rival Airbus SE plans to take a majority stake in the CSeries program.

The ITC determined on Jan. 26 in a 4-0 vote that the CSeries did not harm Boeing and discarded a U.S. Commerce Department recommendation to slap a near 300 percent duty on sales of Bombardier 110-to-130-seat CSeries jets for five years. (end of excerpt)

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

Click here for the ITC’s report (154 PDF pages), made available by the Leeham News & Comment website.


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