Delta Orders 75 CS100's
#226
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I doubt that there are rules prohibiting one company from bailing out another, although there obviously are from a government subsidizing and export. But I thought it was all DOC/ITC on this one and no DOJ? If they restructure the deal and the planes are made in Alabama, I am wondering if ITC even has any jurisdiction. They may, I don't know how any of that works. Boeing has a backlog of 58XX planes so I think they'll be just fine.
#227
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What exactly would your definition of dramatically superior be? They surpass the competition, often substantially, in every major quantifiable metric that matters to both airlines and passengers.
#228
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Maybe they make Airbus pay the Canadian government back? I no nothing of that side so I'll stop speculating.
#230
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And for the record I like the C Series and have said so previously. I think it would be a good fit. But if it was so good then Delta should have paid full price (or at least some realistic price) for it. If they had then none of this would have happened. It was the price dumping by Bombardier that was the catalyst.
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As per the press release, Investissement Quebec (not the govt of Canada) retains its 19% share in BBD; Airbus has not assumed any share of the Quebec ownership of Bombardier.
Last edited by CZAMFlyer; Oct 16, 2017 at 5:42 pm
#232
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And for the record I like the C Series and have said so previously. I think it would be a good fit. But if it was so good then Delta should have paid full price (or at least some realistic price) for it. If they had then none of this would have happened. It was the price dumping by Bombardier that was the catalyst.
I also have to respectfully disagree with your use of the term dumping, in a technical sense. Bombardier sold C-Series to Delta, possibly under cost, for a variety of possible reasons, such as gaining cashflow to finance the program, the publicity of a major order, or an attempt to demonstrate the viability of the program. Dumping is predatory, under-cost, pricing that seeks to drive competitors out of the market in order to establish a monopoly and thereby gain pricing power. Dumping is not winning a single order with aggressive, or even under-cost, pricing. Embraer is far from being out of business, much less Boeing, who doesn't even directly compete with the CS100 anyway and will most certainly continue to produce the 737-MAX7 to compete with the CS300.
Boeing's actions with the UA 737-700 sale and subsequent attempts to block Bombardier wholly from the US market come far closer to the spirit of dumping, eliminating competition, than anything that Bombardier has done.
#233
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I'm not a big fan of consolidation, but if this Airbus deal does not go through and the DL CS100 deal is blocked (by large tariff), won't Bombardier aviation basically fold, resulting in the same number of commercial airlines as will occur with this Airbus deal?
#234
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And Boeing likely sold 737-700s to United under production cost to block them from purchasing the C-Series. Let them duke it out with competitive products and pricing.
I also have to respectfully disagree with your use of the term dumping, in a technical sense. Bombardier sold C-Series to Delta, possibly under cost, for a variety of possible reasons, such as gaining cashflow to finance the program, the publicity of a major order, or an attempt to demonstrate the viability of the program. Dumping is predatory, under-cost, pricing that seeks to drive competitors out of the market in order to establish a monopoly and thereby gain pricing power. Dumping is not winning a single order with aggressive, or even under-cost, pricing. Embraer is far from being out of business, much less Boeing, who doesn't even directly compete with the CS100 anyway and will most certainly continue to produce the 737-MAX7 to compete with the CS300.
Boeing's actions with the UA 737-700 sale and subsequent attempts to block Bombardier wholly from the US market come far closer to the spirit of dumping, eliminating competition, than anything that Bombardier has done.
I also have to respectfully disagree with your use of the term dumping, in a technical sense. Bombardier sold C-Series to Delta, possibly under cost, for a variety of possible reasons, such as gaining cashflow to finance the program, the publicity of a major order, or an attempt to demonstrate the viability of the program. Dumping is predatory, under-cost, pricing that seeks to drive competitors out of the market in order to establish a monopoly and thereby gain pricing power. Dumping is not winning a single order with aggressive, or even under-cost, pricing. Embraer is far from being out of business, much less Boeing, who doesn't even directly compete with the CS100 anyway and will most certainly continue to produce the 737-MAX7 to compete with the CS300.
Boeing's actions with the UA 737-700 sale and subsequent attempts to block Bombardier wholly from the US market come far closer to the spirit of dumping, eliminating competition, than anything that Bombardier has done.
#235
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But even if you disagree, I'm sure you can see the larger point. The precise price of the 737-700 doesn't change the pattern, nor the definition of dumping.
#236
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No kidding this was a bad move by Boeing. This deal only happened because of the tariff. This interesting tidbit about the new ownership is that the c-series is now 50.01% owned by airbus with zero cash exchange. In other words, CRJ gave half the stake in future returns of program to Airbus for free. That tariff killed CRJ and this deal reeks of desperation. Now that more competent management is in charge, this not only could eat into BA but be a real challenge for ERJ.
A320 did not team up with CRJ
Airbus teamed up with Bombardier
#237
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You could be right. I'm not sure what their finances are like right now. I would highly prefer a partnership or merger with Embraer if consolidation must occur. That would provide much better competition with Boeing and Airbus.
#238
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#239
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I'm not sure on their finances either, making an educated supposition based on the fact that they started looking for a buyer/partner after the Delta deal hit road bumps. I could always be wrong, of course, in my supposition.
#240
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That deal would be blocked by every govt in about 2 seconds. Unlike Airbus, Embraer is a direct competitor with Bombardier. Actually, they are the only major competitor for RJs. Combined they would have a worldwide monopoly.