Money Delta Vows Not to Pay U.S. Duties on Bombardier's C Series

20:20  12 october  2017
20:20  12 october  2017 Source:   Bloomberg

Biz jet recovery to offset CSeries woes: analyst

  Biz jet recovery to offset CSeries woes: analyst MONTREAL - A recovering business jet market could help Bombardier Inc. to offset the overhang from Boeing's petition against its CSeries commercial jet, an industry analyst said Wednesday ahead of a second round of duties being slapped on exports to the U.S. "We are pleased with the encouraging signs seen so far, as business jets represent a key driver of Bombardier's profitability," Benoit Poirier of Desjardins Capital Markets wrote in a report. "We are pleased with the encouraging signs seen so far, as business jets represent a key driver of Bombardier's profitability," Benoit Poirier of Desjardins Capital Markets wrote in a report.

[ATLANTA] Delta Air Lines Inc. pledged not to pay import duties on Bombardier Inc' s marquee jetliner, which was socked in the last two weeks with 300 per cent tariffs by the US Commerce Department. It' s possible Delta will delay deliveries of the C Series planes

pledged not to pay import duties on Bombardier . ’ s marquee jetliner, which was socked in the last two weeks with 300 per cent tariffs by the US Commerce Department. It’ s possible Delta will delay deliveries of the C Series planes, which are scheduled to begin next year, chief executive.

Bombardier CS100 Delta:  © Provided by Business Insider Inc

Delta Air Lines Inc. pledged not to pay import duties on Bombardier Inc.’s marquee jetliner, which was socked in the last two weeks with 300 percent tariffs by the U.S. Commerce Department.

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New duties on Bombardier CSeries coming Friday

  New duties on Bombardier CSeries coming Friday The U.S. Department of Commerce says it is delaying its announcement on preliminary anti-dumping duties against Bombardier Inc. until Friday. The company is expected to face additional export duties on its C Series commercial jet. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.

Delta Air Lines Inc. said it wouldn’t pay import duties on Bombardier Inc.’ s marquee jetliner, which was socked in the last two weeks with 300 percent tariffs by the U . S . Commerce Department. It’ s possible Delta will delay deliveries of the C Series planes, which are scheduled to begin next year

But Delta has said Boeing did not even make the 100-seat jets it needed. "These anti-dumping duties on Bombardier ' s C Series aircraft unfairly target Canada's highly innovative aerospace sector and its more than 200,000 workers—and put at risk the almost 23,000 U . S

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It’s possible Delta will delay deliveries of the C Series planes, which are scheduled to begin next year, Chief Executive Officer Ed Bastian said Wednesday. The airline is also considering “various other plans” if the preliminary duties are finalized, he said without elaborating. Delta last year agreed to buy at least 75 of the jets at a list price of more than $5 billion.

“We will not pay those tariffs, and that is very clear,” Bastian said on a conference call after reporting third-quarter results. “We intend to take the aircraft.”

Delta’s determination not to pay the import charges raised the stakes in a dispute pitting Montreal-based Bombardier against Boeing Co., which accused its Canadian rival of selling the C Series at “absurdly low prices.” Boeing won support from President Donald Trump’s administration, which ruled that Bombardier sold the planes at less than their fair market value after benefiting from government subsidies in Canada.

CSeries duties 'appalling', says Bombardier

  CSeries duties 'appalling', says Bombardier Bombardier Inc. accused the Trump administration of overreach by siding with Boeing in its bid to shut the CSeries commercial jet from the world's largest airline market by effectively quadrupling the price of any of the planes sold in the United States. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.

Delta Vows Not to Pay U . S . Duties on Bombardier ' s C Series . Bloomberg. Delta says it won't pay for US tariffs on Bombardier . AFP. A mysterious hole nearly the size of South Carolina has opened in Antarctica's ice.

Delta Air Lines Inc. said it will not pay the 300 per cent tariff to import 75 Bombardier Inc. CSeries jets, but that doesn't mean it' s backing away from the order. Analysts, as well as Bombardier and Delta , have repeatedly stressed that the duties imposed by the Commerce Department are preliminary and

Bombardier jumped 6.8 percent to C$2.35 at the close in Toronto, the biggest gain in five months. Delta advanced less than 1 percent to $53.07.

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Diplomatic Tensions

The trade spat has soured diplomatic relations between the U.S. and two key allies.

Canadian Prime Minister Justin Trudeau warned that the dispute is endangering his government’s purchase of new military jets from Boeing. Speaking to reporters in Washington after a meeting at the White House, Trudeau said he told Trump Canada disagrees “vehemently” with the tariffs.

Duties are “something that we look very negatively on,” Trudeau said. “I certainly mentioned that this was a block to us making any military procurements from Boeing.”

The U.S. Commerce Department ruling has also drawn fire from British Prime Minister Theresa May, who lobbied Trump on behalf of Bombardier and the more than 4,000 people it employs at facilities in Northern Ireland.

Boeing v. Bombardier: Tariff is now 300%

  Boeing v. Bombardier: Tariff is now 300% The U.S. Commerce Department has heaped another big tariff on Bombardier's new C Series jet. The department's International Trade Administration said Friday that it would recommend a 79.82% tariff on the import of each roughly 110-seat Canadian airliner.

(A rendering of a Delta Bombardier C Series jet. Bombardier ) Delta Air Lines says it will not pay the proposed tariffs on its order of next-generation Bombardier C Series airliners. Delta Vows Not to Pay U . S . Import Duties on Bombardier Jetliner.

When the U . S . Commerce Department slapped a nearly 220-per-cent countervailing duty on Bombardier Inc.' s C Series airliner this week, lawmakers in Canada and Britain moved to trade-war footing with the United States and vowed to retaliate.

The tariffs, which consist of 220 percent countervailing duties and 80 percent anti-dumping restrictions, could be reversed by the U.S. International Trade Commission if it concludes that Boeing wasn’t injured by Bombardier’s jet program. That decision is expected to be made next year. The Commerce Department also still needs to issue a final ruling in both cases.

The argument that Boeing was harmed by the C Series is “unrealistic, a bit nonsensical,” Bastian said on the conference call. He said Boeing competed against Bombardier by offering Delta used Embraer SA E190 planes.

Potential Delays

Bombardier CEO Alain Bellemare is counting on the C Series to help fuel an increase of almost 50 percent in annual revenue by 2020. The company has begun ramping up output at its Mirabel factory north of Montreal, with about 30 units of the jet due to be shipped this year.

Delta, which has options to buy 50 more of the C Series jets, is the biggest buyer of the plane. Including the Delta deal, Bombardier has amassed 360 firm orders for the C Series and more than 400 other commitments.

Any appeal of the U.S. duties by Bombardier would likely delay the start of shipments to Delta, said Nick Heymann, an analyst at William Blair & Co.

“Delta wants this plane. They wanted it yesterday,” Heymann said in an interview. “The next part of the process is to find out how Boeing was harmed -- and if this case goes to appeal, then you will have a delay.”

(Updates with comments by Canadian prime minister in seventh paragraph.)

--With assistance from Josh Wingrove

To contact the reporters on this story: Michael Sasso in Atlanta at msasso9@bloomberg.net, Frederic Tomesco in Montreal at tomesco@bloomberg.net.

To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Chris Fournier

©2017 Bloomberg L.P.

UK business minister travels to Canada for talks on Bombardier deal .
UK business minister travels to Canada for talks on Bombardier dealBA

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