Saturday, May 20, 2017

Canada Threatens To Cancel U.S. Super Hornet Jet Buy If Boeing Continues It's Anti-Dumping Probe Into Canadian Jet Manufacturer Bombardier

Canada had planned to buy 18 Boeing-made Super Hornet jets, like the one shown here, as temporary replacements for its aging fleet of CF-18s. (Mark Wilson/Reuters)

Reuters: Ottawa to review Boeing military bids in Canada after battle with Bombardier

The federal government hinted Thursday that Boeing should not take future military contracts with Canada for granted, a veiled threat that coincided with a spat between the aerospace giant and rival Bombardier.

Foreign Affairs Minister Chrystia Freeland's comment that it's "reviewing current military procurement that relates to Boeing" appeared to be a not-so-subtle hint that the government would revisit its purchase of Super Hornets.

The government has said it plans to sole-source 18 Super Hornets as a stop-gap measure before running a full competition to replace its aging CF-18 fleet.

Read more ....

WNU Editor: Boeing has two choices .... drop the case and save the $2 billion Super Hornet deal. Or .... pursue the case .... U.S. to start probes of Boeing dumping claims against Bombardier jet (Business Insider/Reuters) .... with the very real possibility that Bombardier's civilian aircraft may be priced out resulting in billions of additional sales for Boeing .... and as a bonus .... the elimination of a competitor. My money is on Boeing continuing the case .... they are in it for the long term and they definitely will be the big winners if Bombardier is priced out of the U.S. market .... and as for the lost of the Super Hornet deal .... so be it. On a side note .... Bombardier is based in Montreal where I live .... I know a lot of people who work for the company and I have been more than schooled up on their problems. IMHO Bombardier's aircraft are heavily subsidised .... and Boeing does have a case. I also believe that Boeing's Super Hornet is a better jet for the Canadian airforce .... far cheaper and easier to maintain than the F-35. But the Canadian government is in a political bind. Bombardier is based in Montreal employing directly and indirectly tens of thousands who are extremely well paid. Montreal is also the Liberal party's strongest base of support and the reason why they are the government of today .... failure to do something will result in serious political blow-back from these voters .... and that is something that the government  just cannot afford. My prediction .... making defense decisions based on politics is never a good idea ... but this is what the Canadian government is going to do.

Update: As predicted .... Boeing will try to save the Super Hornet deal but they have no regrets in challenging Bombardier .... Boeing scrambles to save big Canada fighter jet deal: source (Reuters). The ball is now in the hands of the Canadian government.

More News On Canada Threatening To Cancel The U.S. Super Hornet Jet Buy If Boeing Continues It's Anti-Dumping Probe Into Canadian Jet Manufacturer Bombardier

Ottawa reconsiders Boeing purchases amid accusations against Bombardier -- CBC
Canada warns it may cancel US Super Hornet jet buy over probe -- Defense News/AP
Canada threatens to scrap Boeing contracts amid Bombardier pricing row -- Global News/Reuters
Canada Reviews Boeing Contracts After Bombardier Jet Challenge -- Bloomberg
Canada Reviews Potential Boeing Deals After U.S. Opens Probe Into Bombardier Pricing -- WSJ
Canada Warns it May Cancel $2 Billion Super Hornet Buy Over Boeing Probe -- Sputnik
Canada Threatens To Dump Boeing 'Military Equipment' Over US Anti-dumping Probe Into Bombardier -- Defense World
F-35 jets waiting in wings as Liberals’ ‘interim’ Super Hornet purchase in limbo -- National Post
Is Ottawa's Boeing threat 'dishonourable' or 'leverage'?: Two analysts weigh in -- CTV News

No comments: