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Delta Orders 75 CS100's

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Old Oct 16, 2017, 5:21 pm
  #226  
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Originally Posted by bergamini
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.
Airbus and the EU reared their ugly heads into the McDonnell-Douglas/Boeing merger so I see no reason for the US and Boeing not to do the same. It is anti-competitive all around. This essentially leaves only three commerical airliner manufacturers.
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Old Oct 16, 2017, 5:24 pm
  #227  
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Originally Posted by minnyfly
There is nothing dramatically superior about the CSeries. It's simply a different-sized (financially poorly-sized at that) aircraft using current technologies.
They're the only aircraft in their size categories that are built with a high percentage (46%) of composites. They have the best CASM in their respective categories and the CS300 also beats the MAX 7 in CASM. They have better pressurization and humidity than anything in their segment and have much larger windows than any other single-aisle commercial aircraft. They have the widest economy seats of any commercial single-aisle aircraft at 18.5"-19". 2-3 seating delivers a superior experience to 3-3. They can also operate into and out of LCY.

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.
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Old Oct 16, 2017, 5:26 pm
  #228  
 
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Originally Posted by readywhenyouare
Airbus and the EU reared their ugly heads into the McDonnell-Douglas/Boeing merger so I see no reason for the US and Boeing not to do the same. It is anti-competitive all around. This essentially leaves only three commerical airliner manufacturers.
I'm not an expert on any of that so won't weigh in, although having only 3 major carriers is also quite anti-competitive and they let that happen. But you do have a point and how that plays out could be interesting. I think some things may change but I'm pretty certain DL is going to take delivery of CS100's.

Maybe they make Airbus pay the Canadian government back? I no nothing of that side so I'll stop speculating.
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Old Oct 16, 2017, 5:27 pm
  #229  
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Originally Posted by bergamini
By poorly sized do you mean it won't allow for 16.9" seats?
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Old Oct 16, 2017, 5:35 pm
  #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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Old Oct 16, 2017, 5:35 pm
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Originally Posted by bergamini

Maybe they make Airbus pay the Canadian government back? I no nothing of that side so I'll stop speculating.
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.

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Old Oct 16, 2017, 5:48 pm
  #232  
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Originally Posted by readywhenyouare
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.
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.
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Old Oct 16, 2017, 5:50 pm
  #233  
 
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Originally Posted by readywhenyouare
Airbus and the EU reared their ugly heads into the McDonnell-Douglas/Boeing merger so I see no reason for the US and Boeing not to do the same. It is anti-competitive all around. This essentially leaves only three commerical airliner manufacturers.
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?
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Old Oct 16, 2017, 5:56 pm
  #234  
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Originally Posted by C W
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.
Boeing has most likely paid off production costs of the 737NG years ago. They probably sold them at cost to United.
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Old Oct 16, 2017, 5:58 pm
  #235  
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Originally Posted by readywhenyouare
Boeing has most likely paid off production costs of the 737NG years ago. They probably sold them at cost to United.
Perhaps, nobody outside of Boeing will likely ever know the answer for sure.

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.
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Old Oct 16, 2017, 5:59 pm
  #236  
 
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Originally Posted by The Situation
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.
I think it's really time for you to learn the difference between a model name, and a company name.

A320 did not team up with CRJ

Airbus teamed up with Bombardier
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Old Oct 16, 2017, 5:59 pm
  #237  
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Originally Posted by ty97
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?
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.
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Old Oct 16, 2017, 6:00 pm
  #238  
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Originally Posted by kjnangre
I think it's really time for you to learn the difference between a model name, and a company name.

A320 did not team up with CRJ

Airbus teamed up with Bombardier
Further, the C-Series doesn't fall under the CRJ brand umbrella.
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Old Oct 16, 2017, 6:10 pm
  #239  
 
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Originally Posted by readywhenyouare
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.
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.
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Old Oct 16, 2017, 6:26 pm
  #240  
 
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Originally Posted by readywhenyouare
I would highly prefer a partnership or merger with Embraer if consolidation must occur. That would provide much better competition with Boeing and Airbus.
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.
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