Canada Canada Scraps Plan To Buy Boeing Jets As Bombardier Dispute Rages On

07:20  06 december  2017
07:20  06 december  2017 Source:   Huffington Post Canada

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Canada suggested on Thursday it could scrap plans to buy Boeing fighter jets if the United States backed Boeing ’s claims that Canadian plane maker Bombardier dumped jetliners in the U.S. market. Story continues below.

Liberal government threat to scrap plan to buy firm's fighter jets won't weaken resolve, Boeing executive says. By Lee Berthiaume, The Canadian Press. U.S. aerospace giant Boeing is not backing down in its trade complaint over Montreal-based Bombardier 's C-series passenger jets

File pic of Canadian F-18 fighter jet.© REUTERS/Vincenzo Pinto/Files File pic of Canadian F-18 fighter jet.

OTTAWA — Canada is scrapping a plan to buy 18 Boeing Co (BA.N) Super Hornet fighter jets amid a deepening dispute with the U.S. aerospace company, three sources familiar with the matter said on Tuesday.

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The comments are the first from a senior Boeing official since the Liberal government threatened last month to scrap plans to buy 18 "interim" Super Hornets over the company's dispute with Bombardier .

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Instead, the Liberal government will announce next week it intends to acquire a used fleet of older Australia F-18 jets, the same kind of plane Canada currently operates, said the sources, who asked not to be identified because of the sensitivity of the situation.

The move underlines Ottawa's anger at a decision by Boeing to launch a trade challenge against Canadian planemaker Bombardier Inc (BBDb.TO), which the U.S. giant accuses of dumping airliners on the domestic American market.

It also casts into question the future of Boeing's military sales in Canada. Boeing says its commercial and defense operations in Canada support more than 17,000 Canadian jobs.

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The comments are the first from a senior Boeing official since the Liberal government threatened last month to scrap plans to buy 18 "interim" Super Hornets over the company's dispute with Bombardier .

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Canada and Mexico are currently locked into increasingly acrimonious negotiations with the United States over the NAFTA trade pact, which President Donald Trump says has not done enough to protect U.S. jobs.

The Liberal Party of Prime Minister Justin Trudeau initially said in late 2016 it wanted the Boeing jets as a stopgap measure until it could launch a competition for a permanent fleet to replace Canada's ageing CF-18 jets.

But as relations with Boeing deteriorated, Ottawa slammed the firm for not acting as a trusted partner and began looking at the Australian jets.

Two of the sources said Australian military officials had been in Ottawa late last month for talks.

One source said that by buying the Australian fleet, Canada would save money as well as avoid the need to train its pilots on a new aircraft or spend money on a new supply chain.

Officials had previously said that if the purchase went ahead, some of the Australian aircraft would be used for spare parts.

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SEATTLE (Reuters) - Canada suggested on Thursday it could scrap plans to buy Boeing Co fighter jets if the United States backed Boeing ’s claims that Canadian plane maker Bombardier Inc dumped jetliners in the U.S. market.

WATCH ABOVE: Trudeau tells Trump it's inconceivable to buy Boeing jets amid Bombardier dispute . READ MORE: Australian fighter jets for Canada ? Experts say it could work. “The ball is in Canada ’s court,” Maloberti said.

The offices of Public Works Minister Carla Qualtrough and Defence Minister Harjit Sajjan, who share responsibility for military procurement, both declined to comment.

Boeing declined to comment. The Australian mission in Ottawa was not immediately available for comment.

Canada is due to officially announce the requirements for its new fighter fleet in early 2019, kicking off an open competition.

Additional reporting by Leah Schnurr in Ottawa and Allison Lampert in Montreal. Editing by Lisa Shumaker and Sandra Maler.

With CF-18 deal, Ottawa replaces Canada’s old jets with Australia’s old jets .
Unveiling military procurements is a proud Ottawa tradition, even if executing on them is another matter

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