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Because of regulatory capture, any competitor will have to be even _more_ subsidized than Boeing is. A few years ago, Bombardier introduced a new plane, the C-
by speed_spread 5y ago
Because of regulatory capture, any competitor will have to be even _more_ subsidized than Boeing is.
A few years ago, Bombardier introduced a new plane, the C-Series. Even though it did not immediately compete with Boeing's own offering, Boeing successfully lobbied for an extravagant 300% import tariffs to be be applied which killed the primary market (US) for it. Canadian government folded and essentially gave the otherwise technically successful project to Airbus in the hope of salvaging any industrial returns on eventual mass production. The airplane is now known as the A220.
Any would-be competitor will not only be fighting Boeing, but the whole US government.
- acchow 5y ago> Boeing successfully lobbied for an extravagant 300% import tariffs to be be applied Doesn't this violate NAFTA?
- speed_spread 5y agoNot just NAFTA. From Wikipedia: > On 10 January 2018, the Canadian government filed a complaint at the World Trade Organization against the US. > On 26 January 2018, the four USITC commissioners unanimously determined that US industry is not threatened and no duty orders will be issued, overturning the imposed duties. The Commission public report was made available by February 2018. On March 22, Boeing declined to appeal the ruling. While the USITC had determined there was no threat, the ruling came too late for Bombardier, as the dumping petition by Boeing had already paved the way for Bombardier to relinquish a controlling interest in the CSeries to Airbus in October 2017. This is just a repeat of the Avro Arrow story. US demanding free trade from everyone and then just bullying its weight around when someone comes along with a better deal than what they can manage.
- doctor_eval 5y agoFree trade, free speech, free markets… but we’re free to change the rules when it suits us, too.
- PHGamer 5y agolol. true but at the same time look at it from americas point of view. aviation is a milatary threat. they need to have an in house team to own that shit. Putin is going to be screwed because he has no aviation industry compared to the EU and US.
- doctor_eval 5y agoCommercial aviation isn't, though. And Bombardier is a neighbour and ally. And ... Putin has a significant aviation industry. For a while they were the only country able to launch humans into space. And as far as I know, they're flying MiGs in Ukraine. But my comment was really intended to say that the "freedom" we are supposedly entitled to is actually a gift, with limits, and there are few better ways to discover those limits than to threaten a very large company.
- acchow 5y agoCanada is already experiencing a constant brain drain to the US - there just not enough Canadian success stories to stay around for. And finally this Bombardier success comes along and the US kills it. Why aren't Canadians more mad?
- xxpor 5y agoBecause if the US stopped buying Canadian oil they'd be screwed.
- philistine 5y agoBombardier is seen by Canadians as a Québec company. And there's no lost love for anything Québec-related.