29 January 2018 by lberuti
On Friday, BOMB ( Bombardier, Inc ) secured an unexpected win regarding its C-series aircraft. The company obtained a favorable ruling when the US International Trade Commission said that American industry is not being harmed by C-Series sales. It blocked a decision made last year by the US administration to impose a 300% duties on any such airplane bought by a US airline company. The dispute arose from a complaint filed by Boeing which argued that the program that led to the design of the fuel-efficient C-Series benefitted from illegal Canadian subsidies to be dumped into the US market. The ITC decision means the airplane could be flown by Delta Airlines as early as this year, allowing it to prove efficiency and reliability on routes that play to the aircrafts’ strengths. BOMB’s 5-year risk premium which got hammered when the imposition of tariffs was announced last September, was went 67bps tighter at 280bps at the close tonight. That is the tightest it has traded in more than 3 years.