U.S. ITC rules in favor of Bombardier and against Boeing in Delta plane deal

In what is being spoken of as a surprise result, the United States International Trade Commission (ITC) has ruled against Boeing in its case brought against Canadian Bombardier’s CSeries and the sale of 75 jets to American carrier Delta Air Lines in 2016 at what was seen to be a ‘dumping’ price. The initial reaction from the U.S. on suspecting this to be the case was for the U.S. Department of Commerce (DOC) to impose a tariff of 219.63% for each CSeries jet imported into the United States.
Boeing claimed that the deal had harmed the aerospace giant, but the U.S. ITC sided more with Bombardier’s argument that the CSeries jets had not been illegally subsidized and nor had Boeing suffered any harm as the company does not currently produce 100-seater planes. It is over 10 years since Boeing canceled production of the 717, the only aircraft of a comparable size.
The result of this ruling by the ITC means that the threatened tariff to be imposed by the DOC is no longer enforceable, though Boeing still has room to appeal to the International Court of Trade in New York, while the U.S. government could take the case to the World Trade Organization.
Bombardier said in a statement that: “Today’s decision is a victory for innovation, competition, and the rule of law.”.
Boeing was understandably less pleased, stating that the company was “disappointed” with the result, and that: “Those violations have harmed the U.S. aerospace industry, and we are feeling the effects of those unfair business practices in the market every day.”
Delta issued a statement saying: “Delta is pleased by the ITC’s ruling rejecting Boeing’s anticompetitive attempt to deny U.S. airlines and the U.S. traveling public access to the state-of-the-art 110-seat CS100 aircraft when Boeing offers no viable alternative.
“The airline looks forward to introducing the innovative CS100 to its fleet for the benefit of Delta’s employees, customers and shareowners.”