Sounds like Boeing is trying to force Delta to buy larger planes. Bombardier makes small capacity planes and doesn’t directly compete with Boeing. Something fishy here. What we’re seeing is not what’s really going on.
Not really. Canada provides direct subsidies to Bombardier, and that means Bombardier is not working with its own capital.
Boeing, on the other hand, does invest its own bucks for everything, from R&D to manufacturing, marketing and sales, to after sales support. . . Boeing has to bid with that cost lug riding on their books.
EDS tried to say that the US subsidizes Boeing because Boeing gets lots of US Government sales, but it is the commercial side that makes the big sales and carries the company, though the military side makes sporadic huge sales. . .and sometimes Boeing is funded for select R&D programs, meaning the government has a mission and needs a product, so they work with Boeing (and other major defense companies) to investigate the technology.
Bottom line; Boeing has to bid on all programs and do not receive subsidies from the government. In Canada, the Canadian government does subsidize not-so-much for R&D, but to reduce the cost lug of developing a product.
Which is still in production....
The new C class, which is what the tariff is about, is larger. 110 - 130 passengers. That competes directly with smaller Boeing 737s.
Actually the Bombardier CS300 seats up to 160 people. The 737-900 can carry 189, about 25% more passengers in the single class configuration. The CS300 serves comparable markets but can operate from shorter runways and has about 10% longer range.