U.S. sides with Bombardier in dispute with Boeing

The Canadian Press</span>
Published Tuesday, September 26, 2017 6:47PM EDT
Last Updated Tuesday, September 26, 2017 6:53PM EDT

OTTAWA -- The U.S. Department of Commerce has clobbered aerospace giant Bombardier with a hefty 219 per cent duty on the sale of its CS100 commercial jets to a U.S. airline following a trade complaint from an American rival.

The department ruled that Bombardier benefited from improper government subsidies, a finding that deals a blow to the Montreal-based company's chances in its ongoing dispute with U.S. rival Boeing.

Boeing had complained that Bombardier inked a deal with Delta Air Lines for up to 125 of the jets by offering the planes at below-market price.

The financial penalties aren't officially due until Bombardier delivers the first CS100 to Delta some time in the spring.

The key will be whether U.S. officials find that the deal between Bombardier and Delta actually hurt Boeing's business, an issue that's not expected to yield a finding for at least six months.

But today's ruling does give Boeing momentum as the dispute drags on, and more leverage in any future talks between the Trudeau government and Boeing to reach a negotiated settlement.

More coming...

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