MAX-7 "at extreme risk" from C Series pricing

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18 Dec 2017 - Boeing and Bombardier clash at U.S. International Trade Commission over pricing

In a hearing today in front of the U.S. International Trade Commission, Kevin McAllister, the head of Boeing’s commercial-airplanes division, has argued that Bombardier’s sale of its CSeries jets at what he said are below fair-market prices poses an existential threat to Boeing’s 737 MAX 7. “Our Max 7 is at extreme risk,” McAllister told the trade panel. “If you don’t level the playing field now, it will be too late.”

Boeing want to have tariffs imposed on sales of the CSeries to compensate for what it describes as below fair-market pricing. This would directly impact deliveries of an order of 75 CSeries jets ordered by Delta in 2016. Delta contends that “Boeing did not lose this sale to Bombardier, When we chose to add the CS100 aircraft to our fleet, Boeing simply did not and does not have the right-sized aircraft.”

The ITC, a quasi-judicial U.S. federal body that is expected to issue a final ruling late next month, heard arguments on whether American industry was harmed by the Bombardier CSeries sale to Delta. Boeing alleges Bombardier can undercut offerings on the U.S. market because of subsidies in Canada.

The 737 Max 7 has only had 63 orders compared to over 3,500 for the MAX-8.

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*** Updated 20 Nov 2018 ***

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26 May 2017 - 737 MAX-7 under threat from C series pricing

It is being reported in Flight International that Boeing vice-chairman Ray Conner has spoken to US trade officials at a hearing held by the United States International Trade Commission on 18 May investigating whether Bombardier violated trade rules. The hearing was established after a complaint by Boeing followingh the sales of C Series to Delta at a reportedly low price.made possible by Canadian government subsidies.

Mr Conner is reported to have said that:

"The 100-150 seat market matters greatly to Boeing, and Bombardier is very close to forcing us out of this altogether,"

and

"It will only take one or two lost sales involving US customers before commercial viability of the Max 7, and therefore the US industry's very future, becomes very doubtful,"

A Boeing attourney also said that

"If Boeing cannot secure additional orders for the 737 Max 7, or is forced to sell at depressed prices, the programme will not succeed and Boeing will be eliminated from the 100 to 150 seat market."