Decision Expected for Boeing’s Anti-Competitive Trade Complaint
Next week the Department of Commerce will issue a preliminary countervailing duty determination in the trade complaint Boeing filed against the aircraft manufacturer Bombardier.
In a piece published in Real Clear Policy by CASE Vice President Gerard Scimeca, we outline the implications of Boeing’s actions.
CASE believes that the Boeing complaint is bad for consumers, bad for airlines, and frankly, bad for the American people, as jobs around the globe are supported by the development of Bombardier’s CSeries aircraft. Bombardier’s innovative approach to regional travel in its CSeries designs are not only a different class of airliner altogether from Boeing’s current offering, but it also poses no competitive threat to arguably the most successful commercial aircraft in history – Boeing’s 737.
Recently, two US airlines, Spirit and Sun Country, have both filed letters into the US International Trade Commission, opposing Boeing’s trade complaint. Neither is a customer of the CSeries, and therefore are not influenced by any pricing on the jets. But the anti-competitive nature of Boeing’s complaint could spell higher costs for airlines, costs which can be passed on to customers.
Sun Country even operates Boeing 737s, but states “Airframe and engine development over the last 50 years — since the Boeing 737 was first introduced — offer new and exciting options for passengers and airlines,” and that the airline, “would greatly benefit from additional options for narrow body aircraft with significant range.”
Bombardier’s newly designed aircraft breaks the mold from conventional commercial aviation and provides an option for airlines for efficiency as well as comfort on short-haul flights.
This is the first decision in a series that will determine the veracity of Boeing’s case, though hopefully Commerce will see the facts that have unified a host of voices from politicians to frequent fliers to trade experts in opposition to this anti-competitive move by Boeing.
