Boeing loses trade case over Bombardier passenger jets
- The ruling is a big loss for U.S. aerospace giant Boeing.
- Boeing complained Canada's Bombardier dumped the planes below cost.
- Delta in 2016 agreed to buy at least 75 C Series jets from Bombardier.
In a surprise decision, the U.S. International Trade Commission has ruled against aerospace giant Boeing in a bitter trade case it brought against Bombardier over passenger jets its Canadian rival sold to Delta Air Lines.
The 4-0 decision is public defeat for Boeing, which had argued that Bombardier's trade practices were illegal and harmful to its business. Bombardier argued that Boeing did not have a comparable plane to offer Delta.
The trade commission was tasked with determining whether Boeing was or could be harmed by Bombardier.
"Today's decision is a victory for innovation, competition, and the rule of law," Bombardier said in a statement.
Boeing shares were recently trading down less than 1 percent following the ruling. Delta shares nudged up less than 1 percent.
The dispute was over the sale of Bombardier's roughly 100-seat C Series jets, which Boeing complained to the U.S. government were sold to Delta below their cost of production and that the program received illegal subsidies from Canadian government.
"We are disappointed that the International Trade Commission did not recognize the harm that Boeing has suffered from the billions of dollars in illegal government subsidies that the Department of Commerce found Bombardier received and used to dump aircraft in the U.S. small single-aisle airplane market," Boeing said in a statement. "Those violations have harmed the U.S. aerospace industry, and we are feeling the effects of those unfair business practices in the market every day."
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