CANADIAN GOVERNMENT FACES WITH BOEING-CRISIS




Mustafa AY – TDO – 16.09.2017 Canadian government has recently frozen the purchase of 18 F-18 Super Hornet aircrafts worth to 5 billion Dollars, on account of the deepening crisis among Canadian Bombardier aerial company and American Boeing Corporation. That’s why, Boeing harshly challenged Bombardier whose C-series Commercial aircraft is currently dominating US market. On comparison with Boeing’s new brand ‘787 Dreamliner’, Bombardier’s C-series is cheaper and modern enough. The real motive behind this aggravating challenge against Bombardier is the fact that Boeing considers to lose its main market –USA- to Canadian company.

Boeing has literally taken position against Bombardier for the reason of that Corporation will most likely have long-term financial lose. Besides two company, Canadian government as third person has reacted Boeing’s challenge with suspended 18 F-18 aircraft deal. The reason behind this decision of Ottawa is that Bombardier is dominating US market and make vast income from there. Ottawa regards this progress as “more money creates more revenue; more deal creates more employment within Canada”. For this reason, Canadian government naturally backs Bombardier up and by suspending deal which may be perceived as deterrent by Boeing. However, Boeing seems both to ignore Canada’s decision on suspending F-18 deal, and to preparing for future plans to cease Bombardier’s rising dominance in US market. Boeing is aware of that Bombardier will allocate its income from USA to development so that it can sustainably keep US market at hand, not to lose, which means long-term financial damage to Boeing.

Boeing is going to probably benefit from Trump administration and its lobbies in the Congress and Senate. As known, Trump came up with the slogan “USA first!” and invariably reminded the gravity of this. Initially, Whitehouse took position against NAFTA members – Canada and Mexico –. For this reason, Canada and Bombardier may be subject to a commercial bill proposed by Congress on behalf of Boeing. It seems to possibly happen on the ground that Boeing oddly overlooked the deterrent deal-off decision of Canadian government. Besides, Canada convened Boeing to resolve this deepening crisis, but no settlement was attained because of Boeing’s fudge on the dispute.