Boeing says Bombardier CSeries jets may face hefty duties despite Airbus deal

A Bombardier CS300 C Series aircraft, manufactured by Bombardier Inc., lands after a flying display on day two of the 51st International Paris Air Show in Paris, France, on Tuesday, June 16, 2015.

Jasper Juinen | Bloomberg | Getty Images

A Bombardier CS300 C Series aircraft, manufactured by Bombardier Inc., lands after a flying display on day two of the 51st International Paris Air Show in Paris, France, on Tuesday, June 16, 2015.

Boeing said in which the announced deal has no effect on the pending U.S. Department of Commerce proceedings. “Any duties finally levied against the C-Series… will have to be paid on any imported C-Series airplane or part, or This particular will not be permitted into the country,” Michael Luttig, Boeing’s general counsel, said in a statement.

Investors cheered the winners of the deal in which is actually set to shake up the $125 billion a year market for large jets. Bombardier shares jumped 15.7 percent on Tuesday, while shares in Toulouse, France-based Airbus rose 4.8 percent.

The transaction would certainly give Airbus a 50.01 percent stake in an entity recently carved out of Bombardier to produce in addition to also market the CSeries, four years after This particular first flew which has a goal to enter the large jets market.

although in a move emblematic of the huge risks of aerospace competition, Bombardier will get just one dollar for the majority stake in exchange for Airbus’s purchasing in addition to also marketing power to support an aircraft in which has won fans for its fuel efficiency although had not secured a completely new order in 18 months for the 110-130 seat plane due to doubts over its future.

Bombardier’s strategy of performing final assembly in Alabama might allow the CSeries to avoid duties because the trade case targets partially in addition to also fully-assembled aircraft, said U.S. international trade lawyer William Perry.

Bombardier in addition to also Airbus could argue they are importing parts, like the wing by Northern Ireland, to be assembled within the United States.

“in which may be the loophole Bombardier is actually hoping to use,” he said by phone.

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