Boeing shares rose in the US trading day Wednesday, as the US International Trade Commission upheld its complaint that its Canadian rival Bombardier benefitted from illegal state subsidies.
That decision paves the way for the ITC to permanently impose a 300% import duty on Bombardier’s C-Series planes sold in the US.
Boeing shares closed 0.22% higher to finish at a share price of $297.90. Bombardier shares, meanwhile, closed 1.31% down to end the Canadian trading session at CAD2.99.
Bombardier’s C-Series no threat to Boeing
Bombardier issued a statement following the US ITC’s decision to uphold Boeing’s complaint that the Canadian aeroplane maker was in receipt of illegal Government subsidies.
“The evidence presented Monday at the US International Trade Commission demonstrated that Boeing’s petition is an unfounded assault on airlines, the flying public, and the US aerospace industry,” said Mike Nadolski, Vice President of Bombardier’s Communications and Public Affairs.
“The fact is that the C Series simply does not threaten Boeing. Boeing did not compete in the Delta campaign,” Nadolski said.
“We remain confident that at the end of the process, the United States International Trade Commission will reach the right conclusion, which is that the C Series benefits the US aerospace industry, US airlines, and the US flying public,” Nadolski added.
A final ruling on whether or not the 300% import tariff on Bombardier C-Series planes sold in the US will be made permanent, will be made in February.
Northern Ireland job fears
The US ITC’s latest decision has also stoked fears that Bombardier jobs based in Northern Ireland could be lost. Bombardier currently employs some 1,000 workers in Belfast whose jobs are linked to the C-Series.
The Unite union, who represents Bombardier works in North Ireland said the decision “poses a devastating risk for the Northern Ireland economy.”
“Tariffs on the scale proposed by the US Commerce Department in the world's largest airline market, threaten to undermine the long-term economics of Bombardier's presence in Northern Ireland,” said Susan Fitzgerald, the regional Unite officer for Bombardier in Northern Ireland.