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In Bombardier fight, Boeing sees ghost of Airbus ascent. Risks of loss of selling military planes to Canada
Two words underpin Boeing's (BA.N) decision to launch a U.S. trade complaint against Bombardier (BBDb.TO), which plunged it into a row with Canada last week: "Never again". Still, Boeing faces a headache over what to do about lost fighter sales if Canada makes good on a threat to drop a deal for F/A-18 warplanes in retaliation for Boeing's trade claim. With Boeing's future fighter production in jeopardy as sales run dry, Boeing is anxious to keep its presence in that… (www.reuters.com) Más...Sort type: [Top] [Newest]
The big picture is that the USA suckered Diefenbaker into exiting the Military Aircraft industry and cancel the AVRO Arrow and the Iroquois jet engine. The USA sold Canada a bunch of useless Bormark missiles to add insult to industry. Bombardier will reenter the Military Aircraft industry again. Canada will use their budget to ignite the process. The chickens are coming home to roost. Why would Canada be once again suckered into buying overpriced obsolete technology to prop up Boeing?
Boeing doesn't like it when another A/C maker does exactly what Boeing's been doing themselves? They're 'Gas Lighting'! The C-Series is a game changer in the regional market and Boeing knows it.
The problem comes when the competitor received significant government subsidies to help compete. That is not fair trade when Boeing receives none.
1. boeing receives significant tax incentives in both washington state and south carolina.
2. boeing was also the beneficiary of 40% of the export-import bank's 2014 disbursals.
do these not represent government subsidies to help compete?
2. boeing was also the beneficiary of 40% of the export-import bank's 2014 disbursals.
do these not represent government subsidies to help compete?
No, Tax breaks are not subsidies. Also, must big businesses see them, it is not just limited to the Airline industry. If a state wants to attract a business, it needs to offer something up.
Curious, how much in taxes does Emerites pay to the UAE every year?
Curious, how much in taxes does Emerites pay to the UAE every year?
While you're correct that strictly speaking these incentives are not subsidies, it's still a govt incentive to help Boeing. From a balance sheet perspective, reduced tax payments are an asset just like a subsidy.
Beyond that, I think you've missed the point. This isn't about what "most big businesses" see, nor what un/favorable tax environment Emirates has. My point is Boeings asset sheet is bolstered by a government just the same as Bombardier's. How much is the question?
Beyond that, I think you've missed the point. This isn't about what "most big businesses" see, nor what un/favorable tax environment Emirates has. My point is Boeings asset sheet is bolstered by a government just the same as Bombardier's. How much is the question?
What is Canada going to do... it doesn't want to pay for the F-35 (though it just dropped another $30m in), and it doesn't want to keep its order for the F/A-18 that it was going to use instead....