4 ms·
Boeing plays a lot of games like getting 40% of its revenue from the US government but crying unfair when other countries get any subsidies at all. Look at the
by dghughes 9y ago
Boeing plays a lot of games like getting 40% of its revenue from the US government but crying unfair when other countries get any subsidies at all. Look at the nearly 300% duty it demanded added on to the parts made by their competitor Canadian aircraft manufacturer Bombardier.
- valuearb 9y agoThis is a lie. Bombardiers planes don’t compete with any Boeing planes. Yet still Boeing flexed their lobbyists.
- louithethrid 9y agoLobbyism is what saved the american car industry.
- valuearb 9y agoCitation needed, cause no.
- majormajor 9y agoThe American car industry is safe in the US market as long as nobody outside the US figures out how to compete with the F150. Even if it had to eventually ditch everything but the trucks, the cash cow shows no signs of dying anytime soon. Make them aluminum, carbon fiber, electric, turbo, whatever - it's the form factor that sells.
- selectodude 9y agohttps://en.wikipedia.org/wiki/Chicken_tax https://en.wikipedia.org/wiki/Chicken_tax Foreign automakers can't sell trucks in the US.
- kalleboo 9y agoSure they can, they just can't import them. Japanese car makers have had manufacturing in the US for ages now.
- undersuit 9y agoDelta chose to go with Bombardier planes in this case[1] which directly affected Boeing's ability to sell them their equivalents. That sounds like competition. [1]https://en.wikipedia.org/wiki/CSeries_dumping_petition_by_Boeing https://en.wikipedia.org/wiki/CSeries_dumping_petition_by_Bo...
- kogepathic 9y ago> which directly affected Boeing's ability to sell them their equivalents. Boeing's bid to Delta was some Embraer E series they had from an Air Canada trade-in. [1] No model of 737MAX competes with the C Series for Delta's RFP. Both Boeing and Delta have readily admitted this when asked (see [1]). Boeing has nothing in the market to compete with regional jets like the C Series. This is exactly why they are now looking into buying Embraer to counter Airbus acquiring a majority stake in the C Series. [2] [1] https://www.forbes.com/sites/scotthamilton5/2016/05/17/embraer-cries-foul-over-delta-c-series-deal-but-it-may-be-more-commercial-than-you-think/#74c3082d656d https://www.forbes.com/sites/scotthamilton5/2016/05/17/embra... [2] https://www.bloomberg.com/news/articles/2017-12-21/boeing-is-said-in-talks-to-acquire-embraer-wsj-reports https://www.bloomberg.com/news/articles/2017-12-21/boeing-is...
- undersuit 9y agoThat sounds like there is competition for this market between Bombardier and Boeing.
- kogepathic 9y ago> That sounds like there is competition for this market between Bombardier and Boeing. Not sure how you came to that conclusion. Let me try again: It's like going to a Ford dealership and asking them for a scooter. Because Ford doesn't manufacture scooters, they offer to sell you a Vespa instead because the last customer traded one in. Sure, they'll make a sale, but it's not like Ford makes the Vespa or the replacement parts for a Vespa (maintenance contracts are a BFD in aerospace, often worth more than the initial plane order). So now you (Delta) come and want to buy 100 Vespas, and Ford still doesn't make a Vespa and has no plans to. So while slagging Vespa (Bombardier) for detracting from Ford's scooter sales they start talks to buy Vespa's closest competitor (Embraer). Yeah... Totally competing in the same segment...
- inferiorhuman 9y agoThe risk isn't that Boeing competes with Bombardier right now. The risk is that the Bombardier will stretch the C-series and create a CS500 that will compete directly with the 737. You can't do that with the Embraer.
- valuearb 9y agoThat’s a risk our trading rules aren’t supposed to address.
- inferiorhuman 9y agoAgreed.
- junkscience2017 9y agoYet Bombardier itself is subsidized to the point where many have suggested it would be easier to just nationalize it...yet no one is critiquing that arrangement
- alexland 9y agoThat arrangement is heavily critiqued, particularly that Bombardier is still controlled by private shareholders (and is receiving significant public funding). It's pretty clear that airplanes are expensive to build, and every large plane manufacturer has government subsidies, but Boeing is being particularly anti-competitive in this instance and is getting away with it.
- Analemma_ 9y agoWhat does "particularly" anti-competitive mean? Boeing, Airbus, and Bombardier all get government subsidies. Are there are reliable numbers about how large these subsidies are showing that Boeing's are significantly bigger?
- toyg 9y ago> What does "particularly" anti-competitive mean? The fact that they have instigated litigation in what is, for them, a relatively fringe sector.