Bombardier 'must' cut 280 jobs in Northern Ireland

Boeing's net income fell 18.7 percent to $1.9 billion for the quarter ending September 30 but revenues rose 1.7 percent to $24.3 billion

At the center of the dispute are 75 Bombardier C Series jets, which Boeing alleged were sold to Delta Air Lines (NYSE: DAL) for "absurdly low prices, in violation of USA and global trade laws".

"This news is all the more concerning as it comes despite management pronouncement that the Airbus acquisition of a 50.01% stake in the C Series programme might result in a potential doubling of production on site".

The passenger planes are facing a 220% tariff and further 80% levy as a result of a USA state aid ruling - disputed by the company and the United Kingdom and Canadian governments.

During the third quarter earnings call, Muilenburg addressed the situation in response to several questions on the matter from both reporters and analysts.

Last week, Europe's Airbus announced a partnership with Canada's Bombardier on the C Series, a narrow-body aircraft that competes with Boeing's 737.

But a number of factors will make that a very hard task.

"Unite has highlighted the fact that Airbus paid nothing for this stake and that it will only come into effect in the second half of 2018".

Recent decisions by the USA authorities to impose a huge 300% duty on C-Series jets being sold in the U.S. did raise job fears in Belfast. While sources told The Globe and Mail that the Canadian government was not keen on a Bombardier deal with China because of intellectual property issues, Boeing's leadership was betting on China taking over the C Series, not Airbus, according to CNN. Therefore, the world's largest airplane maker wouldn't feel any real competitive threat there for at least the next three years. "We are going to continue to fuel that effort". That would mean on a 22-day per-month production cycle, even by building almost three 737s per day, Boeing still can barely keep up with the production demand for its airplanes that theoretically compete with the C Series. Bombardier claims it has an operational cost that is up to 18% lower than "larger re-engined aircraft".

Revenues rose 1.7% to US$24.3 billion.

Embraer's next-generation E2 regional jets will also present a strong competitor to Airbus, Boeing and Bombardier in this segment.

"At a time when the unions and the broader Bombardier workforce in Northern Ireland are leading efforts to put the pressure on political leaders to use their leverage on Boeing and the United States administration to rescind the 300% tariffs threatened on the C Series, it is very saddening that our efforts are rewarded by this announcement", he said.

"President Trump's Commerce Department is determined to prevent Bombardier from repeating the Airbus strategy of leveraging illegal subsidies to destroy US aerospace jobs", Mr. Thompson wrote in an opinion piece for Forbes this week. "We are confident we can win, but it's important that everybody plays by the same rules".

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