This week, Delta Airlines Chief Executive Ed Bastian announced that the company's board is confident it will not have to pay a 300% tax on every CS100 aircraft it buys from Bombardier, despite constant efforts by the US Department of Commerce to enforce it. the tax from the beginning of 2018.

“We will receive the planes, there may be a delay … but we do not expect to pay more taxes”, he said during a third-quarter earnings call.

Bastian also pointed out that Delta has “several other plans and alternatives” if the US government does decide to tax Bombardier planes by 300%.

But even with this exchange of accusations from the US, Delta maintains its opinion that Boeing has not built any aircraft the size of the CS100 since the 717, which ceased production in 2006, the US company even bought a large batch of planes 717s recently used to replace its MD80 line aircraft.

Despite this, Boeing claims that the CS300 directly affects the viability of the 737-700 and 737 MAX 7 aircraft. In the end, the company most affected by this whole mess is Embraer, which competes directly with Bombardier and is even supporting a process of Brazilian Government in the WTO (World Trade Organization), about the billionaire subsidies that the company received from the Canadian government, this same process is filed by the US in the WTO with support from Boeing.

Delta plans to configure its CS100 planes with 110 seats across two passenger classes, the same number as its 717-200s. In the same configuration, the 737-700 has 124 seats.

The Commerce Department said it plans to make a final decision by Dec. 19, with application as early as February 2018, the same period Delta is expected to receive the first CS100.

the subsidies

According to the allegations presented by the United States, Delta would have ordered each aircraft for 20 million dollars, while the cost of producing the CS100 is around 33 million dollars (value estimated by Boeing), the list price is US $65 million. With the suggested tax applied, the CS100 jet would cost Delta $76 million per unit.

Boeing judged these prices as "excessively low for the industry", and was even responsible for the production calculations presented in the US lawsuit against Bombardier at the WTO (World Trade Organization). 

The US-submitted report demonstrates that Bombardier benefited from a $2,5 billion capital injection through the Ottawa government, nearly $500 million in aid to launch the CSeries and at least $1,6 billion in other subsidies. In the same period, Bombardier was mired in financial losses, due to the complexity of developing the CSeries family.

Via - Flightglobal

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In addition to the 220% tax, the US wants to apply another 80% tax to Bombardier planes