- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) likely will face additional duties when the U.S. government issues a preliminary decision on Boeing's (NYSE:BA) dumping allegations tomorrow, a week after the U.S. slammed the Canadian planemaker with a 220% countervailing duty that has effectively shut the company out of the U.S. market for its CSeries jet.
- Boeing had asked the Commerce Department to impose an 80% anti-dumping duty on U.S. imports of the CSeries, but hiked the figure to 143% after it said Bombardier withheld important information pertinent to the investigation.
- But Desjardins analysts say improvements in the business jet market could be a key driver of Bombardier's profitability, which could offset the overhang caused by the ongoing trade spat.
- Industry publication FlightGlobal has noted signs of improvement in the business jet market this year, including a 20% decline in the number of business jets available for sale, “a positive for Bombardier as lower inventories will likely stimulate demand for new aircraft,” Desjardins says.
- Now read: Boeing: The Trend Is Up
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