Boeing Need Not Fear Airbus Deal With Desperate Bombardier

Since its original 2004 launch, the CSeries has been nothing but a commercial disaster like Concorde and the A380 – surviving largely on junk credit rated customers and a taxpayer-filled begging bowl. You’d be forgiven for thinking that this is Airbus we’re talking about.

The Airbus-Bombardier deal, assuming it all goes through smoothly next year, will provide the jet with stronger backing, but that does not translate into sales.

Bombardier is in denial if it thinks Airbus will market CSeries ahead of any chance to cross-sell the A319neo, A320neo or A321neo.

While many wax-lyrical about this deal, the fundamentals about the CSeries’ poor sales, market rejection and innocuous “comfort” claims have not changed. Boeing need not worry – regardless of whether it partners up with Embraer as a mooted response or not.

The Lego-like assembly of parts in Mobile, AL does not ensure that duties can be avoided. Much of the CSeries would just be snapped together, not fabricated there – big difference. Parts shipped in would be subject to heavy duties and taxes. Nor does it deliver value for Airbus – and in fact takes away the very jobs Quebec wanted to secure with its $1bn bailout.

Canadian taxpayers however, are now left scratching their heads. They bailed out a dying company, lined the pockets of the controlling family who then handed the entire thing over for nothing to Airbus who will eventually put jobs in Mobile at the expense of those from Mirabel. You couldn’t make this stuff up.

The US Commerce Department will look thoroughly at this deal. It will see  Bombardier’s failure to answer their questions along with this potential trade circumvention deal with Airbus to ensure that compliance and enforcement of duties is a priority.

Image Courtesy of Airbus

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