Scott Beale Tempus – Boeing’s Pain is Airbus’s Gain

Aircrafts are the mainstays of any aviation company. For the sake of general knowledge, most of the common public must have come across two popular names of aircrafts in their lives. Boeing and Airbus, and rightfully, these two companies hold around 80 percent of the total aircrafts manufactured to date. A recent politics by Boeing has now left them, losing a massive scope of fleet against that of their arch rival Airbus. Scott Beale Tempus tells how.

Aviation industries see few small players in the aviation industry and one such is Bombardier, a Canadian based aviation company. Bombardier is known for the manufacturing of smaller jets, like Dash8 Q400 and CRJ Series aircrafts, which are essentially suited for smaller airports with lesser demands.In 2007, they started a new class of planes called as C series, which will allow a new class of plane that both the big guns, Airbus and Boeing lacked big time.

After a series of potential tests and re-tests, C-Series aircraft was scheduled to enter commercial airways in 2014.

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C-Series Saga

  • Talking about performance, C-Series is an amazing plane with the seat structures and passengers comfort are of top notch.Comparing to a Boeing 737 or an Airbus 320, there were lesser seats, but amazingly high range of flying. C.
  • To make a mark in the US markets, there was a requirement for the company started to sell the aircrafts Delta Airlines (one of US’s major aircrafts) and they decided to price around 10 million lesser than the list price.
  • Boeing, a US based manufacturer took a note for the program’s warning alarm and filed a petition to US Dept. of Commerce stating the “Dumping Allegation” by Bombardier was illegal to exist. Boeing demanded the department of commerce to extend the price cap by 80%.
  • The department of Commerce slammed a 300 % on imported plane, which virtually marked the of C-Series planes.
  • Later in 2017, Airbus took the opportunity and acquired a 50 % stake of Bombardier, which they gave out free. Bombardier understands that Airbus is a marketing hub and by all means they will get to utilize the final assembly unit at Mobile, Alabama in US. This will mean, Bombardier will not be subjected to the 300 % import duty.
  • Though Boeing feels the other 50 % held by Bombardier will be subjected to the 300 % fine, which Bombardier played down saying they will continue the production line.

What looked like a meager 300 plane sale by Bombardier has now ensured C-Series to have a production line, which can sell over 5000 planes, thanks to the advanced production line by Airbus. In the end, all the profits with C-Series plane will be a direct loss to Boeing’s politics. More because Airbus have now gained a new aircraft in their production lines and Boeing will lose a new class of plane and also an order which could have stalled at a maximum of 500 to now being 5000. Scott Beale Tempus thus hope for a new revival of Bombardier C-Series will dominate the world cycle with its unique sized planes.