Aerospace |
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Bombardier
Suggests Government Should Join Battle With Embraer
Last week, Bombardier's CEO Laurent Beaudoin, stated that the Canadian government should lodge a formal complaint with the World Trade Organization. The action could help gain a ruling from the organization on Brazilian support to Embraer. Embraer has responded by accusing Bombardier of gaining the same kind of government help, pointing to Canadian government support for the development of the Canadair 700. None of the three parties to the American Eagle orders have revealed the difference between the Embraer prices and those offered by Bombardier. Reporters at the Bombardier/American Eagle Paris Air Show
press conference were surprised at the anger expressed by
Bombardier executives over the order loss.
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Montreal-based Bombardier is still steaming over the American
Eagle order for 50-seat aircraft going to Brazil's Embraer. The
deal, announced at the Paris Air Show, stirred up old
hostilities between the two companies, pitched in rivalry in the
hot regional jet market. While Bombardier gained the portion of
the American Eagle order for 70-seat aircraft for its Canadair
700 Regional Jet, the manufacturer claimed that Brazilian
government financial support gave Embraer's EMB-145 the edge for
the 50-seat portion.
