Boeing needs Embraer deal to stay airborne after tariff crash

ITC rejects Bombardier's request to review Embraer range

The dispute took a twist in mid-October when Bombardier agreed to sell the C Series plane to Airbus, a deep-pocketed European aerospace giant that is Boeing's closest competitor.

Thousands of workers will be "breathing a huge sigh of relief" after Canadian aircraft manufacturer Bombardier Inc won a major trade dispute with the United States, unions have said. The panel's ruling blocks a Commerce Department decision last month to impose duties of nearly 300 percent.

A spokesperson for Boeing said it was "disappointed" by the ITC's decision and that it would "review the detailed conclusions when they are released".

Boeing also claimed that Bombardier was guilty of "dumping" the aircraft in the US market by selling 75 of the jets to Delta in 2016 at a very low price.

In a final submission to the USITC, Bombardier said it expects Boeing will likely respond by filing a new petition once there is a new USA order for the C Series because it doesn't believe the Alabama line will be built.

"This clears the way for the jets being to delivered to Delta", Murray said.

"Common sense should now trump because there's absolutely no reason now for the C Series to satisfy the US market be built in Mobile, Ala", Unifor president Jerry Dias told reporters.

Boeing officials have said they tried to resolve their concerns diplomatically before Trump took office, to little success.

In September, the Commerce Department proposed a tariff of 219.6% on the Canadian jets, then added an additional 79.8% tariff the following month.

Delta said Friday it was pleased with the ruling "rejecting Boeing's anti-competitive attempt to deny US airlines and the USA traveling public access to the state-of-the-art 110-seat CS100 aircraft when Boeing offers no viable alternative".

The bitter trade dispute between the two aircraft manufacturers escalated.

In key testimony before the ITC a year ago, Greg May, senior vice president of fleet and supply-chain management at Delta, said, "It would be wrong to suggest that Boeing lost sales to Delta because we purchased the CS100".

The trade court said it hadn't found Boeing was materially harmed by Bombardier's trade practices.

He said details about the Embraer aircraft, which came after the factual record closed at the USITC, "eviscerates the premise of Boeing's case". "Bombardier and its innovative workforce play a vital role in the Northern Ireland economy", while NI Secretary of State Karen Bradley tweeted: "Today's unanimous decision in favour of Bombardier is great news for the company, the workforce, their families and NI - a really bright future ahead".

"Other airlines in the US are probably going to take a closer look", said Dan Fong, an analyst at Veritas Investment Research Corp.in Toronto. That project, which would make planes for the US market and complement a factory in Mirabel, Quebec, is estimated to cost $300 million.

The Trump administration had threatened to impose duties of 292% following a complaint brought by rival Boeing, which claimed the aircraft are being sold at below cost and are being fuelled by government subsidies.

Bombardier still intends to open a CSeries final assembly site in Mobile, Alabama despite winning a major trade battle with Boeing. Bombardier shares jumped more than 15 percent.

"This decision should be viewed as limited to an extraordinary set of facts", said Dan Ujczo, a trade attorney with Dickinson Wright.

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