Bombardier a live political issue as second judgment due

Days away from a second ruling in the unfair trading case brought against the Canadian planemaker by US giant Boeing, Mr Corbyn released details of a letter to Mrs May urging her to join with Canadian premier Justin Trudeau in summoning the head of Boeing to an “urgent summit” to demand it drops its claim.

Details of Mr Corbyn’s actions emerged after NI Secretary of State James Brokenshire visited the firm’s Belfast division where 4,200 people are employed - around 1,000 of those on production of the high-tech wings for the CSeries.

Boeing has lodged a petition that Bombardier benefitted from Canadian and Quebec government cash to cut the price of the CSeries in relation of a deal with US airline Delta for up to 125.

Last week the Dept tripled the tariff per plane requested by Boeing from around 80% to almost 220% on the issue of countervailing, or financial support.

Later this week it will address the issue of ‘dumping’ or unfairly cutting the price of a good in which Boeing has again requested a tariff of around 80%.

However, given the response last week there are obvious concerns that Dept may take the opportunity to impose another punitive tariff as before.

Mr Brokenshire visited Bombardier CEO Michael Ryan and the Unite Trade Union to underline the Government’s support.

“Bombardier jobs are absolutely vital to the Northern Ireland economy,” he said.

“There is a compelling requirement for all in politics, in business and across the community to stand as one on this issue.

“I want to echo comments by Defence Secretary Sir Michael Fallon that this is an unjustified action by Boeing and whatever course of action they take could have an impact on any future dealings they may have with the UK Government.”

Stressing that London will continue to work with all parties to find a resolution, he sasid the issue also highlighted the role that could be played by a functioning Executive.

“I hope this fight can be boosted by getting Stormont back up and running. I remain hopeful a political deal can be done and I again call on the parties to resolve differences and work together for everyone in Northern Ireland.”

In his letter, Mr Corbyn urged Mrs May to act with “strength of purpose” and join Mr Trudeau in confronting Boeing chairman and CEO Dennis Muilenburg to make clear the firm must now withdraw its claim.

He said that the dispute showed the dangers of relying on a free trade deal with the US once Britain has left the EU.

“Your own discussions with President Trump, now over three weeks ago, have not resulted in the resolution of this dispute,” he said.

“You must now realise that the aggressive and protectionist way the US government conducts its trade relations with other countries is not conducive to the swift and beneficial post-Brexit trade agreement that you and your ministers have so often suggested.

“You must now act with strength of purpose in the national interest.”

Although the new, additional tariff ruling could well be in excess of Boeing’s bid once again, it can hardly do more to damage the CSeries’ chances in the US market than last week’s ruling.

However, Delta boss Edward Bastion dismissed the initial tariff as “absurd” and said Delta would continue to work with Bombardier on the order which is due for delivery from next year.

The firm is also on the verge of signing a deal to sell at least CSeries aircraft to Air Baltic worth around $1.25 billion.

CEO Martin Gauss told Canadian business news site BNN that the Latvian operator planned to add to the existing order for 20 CSeries.

“We have made the strategic decision to go to an all-jet fleet,” he said.

“It’s not clear when we will place the order, but we will replace our turboprops with C Series.”

Several other US airlines have also backed Bombardier against Boeing including New York based JetBlue which is evaluating the aircraft as it plans to replace its fleet.