Wednesday, September 20, 2017
Boeing vs Bombardier: Another case of tax fraud
The Boeing vs Bombardier legal dispute is in the news. Justin Trudeau said “We have obviously been looking at the Super Hornet aircraft from Boeing as a potential significant procurement of our new fighter jets,” Trudeau said Monday. “But we won’t do business with a company that’s busy trying to sue us and trying to put our aerospace workers out of business.”
Boeing responded with "“Boeing is not suing Canada. This is a commercial dispute with Bombardier, which has sold its C Series airplane in the United States at absurdly low prices, in violation of U.S. and global trade laws. Bombardier has sold airplanes in the U.S. for millions of dollars less than it has sold them in Canada, and millions of dollars less than it costs Bombardier to build them. This is a classic case of dumping, made possible by a major injection of public funds." OK so that is the root of the problem. Why in God's name would we sell a product to the United States for less than it cost us to make it? That is bad business.
Bombardier has a very long history of getting government bailouts. In 2015 CBC reported that "Bombardier loses $4.9B US in 3rd quarter; Quebec to invest $1B US in CSeries program." In February 2016 Zero Hedge reported that "Bombardier Thanks Canada For $1 Billion Bailout By Firing 7,000 People." March 2017 the National Post reported that "Bombardier’s top execs get almost 50% pay raise as company lays off thousands, taps government aid."
Bombariad is a company like unto Lockheed Martin and SNC-Lavalin. They are all dirty as f*ck and burn tax dollars like an incinerator while top executive line their pockets with tax dollars. Boeing on the other hand is a legitimate reliable pillar in the private industry. Boeing makes money consistently. It's not embroiled in fraud like the others.
The Super Hornet is the best product on the market for Canada. The F-35s don't work in the Canadian arctic but the Super Hornet does. The F-35's are nothing but problems. If Canada wants to look at alternatives to the Super Hornet Russia is the only other logical option. The MIGS have a long history of competence. I personally prefer the Super Hornet for obvious reasons. Boeing creates jobs in Canada. Last year they announced a new lab in Vancouver.
We need to look beyond the court dispute and ask ourselves why are we selling products in the United States for less than it costs us to make them? That's like BC Hydro selling power to the US for less that what it costs us to produce it. That is bad business.
I do have a solution - a merger. Boeing takes over Bombardier with the commitment to keep a plant in Quebec. Boeing can make Bombardier profitable. Paul Tiller and Moya Greene couldn't.
What Went Wrong with the F-35
"The F-35 was billed as a fighter jet that could do almost everything the U.S. military desired but has turned out to be one of the greatest boondoggles in recent military purchasing history."
Dozens of F-35s Might Not Ever Be Able To Fight
Lockheed Martin still trying to scam Canadian taxpayers