Canada canceling purchase of new Boeing fighter jets
Canada canceling purchase of new Boeing fighter jets
Canada to buy surplus Australian F-18s, says report
07 December, 2017, 06:33
Global News, however, noted that statisticians with both the USA and Canadian governments agree that the us enjoys a $12-billion trade surplus with Canada, when the value of services - as opposed to goods - is factored in.
The Liberal government said last year that it planned to start receiving new fighter jets in about five years, or around 2021, at which point the phase-out of CF-18s was scheduled to begin.
The Canadian government is contemplating buying used F/A-18 Hornets from Australia instead of procuring new Super Hornet planes directly from Boeing, a move that would be a major blow to the company's fresh new aircraft line, Defense News reports.
Some are also wondering whether the Liberals, who promised to launch a formal fighter-jet competition to replace the CF-18s before the 2019 election, now plan to hold off until after Canadians go to the polls.
The U.S. plane manufacturer filed a complaint against its Canadian rival Bombardier in April 2016, accusing it of using Canadian government subsidies to win a Delta Air Lines contract for 75 aircraft. The funding allowed Bombardier to significantly lower the cost per aircraft, Boeing argued.
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The move underlines Ottawa's anger at a decision by Boeing to launch a trade challenge against Canadian planemaker Bombardier Inc (BBDb.TO), which the USA giant accuses of dumping airliners on the American market.
But the Australian jets are 30 years old - the same vintage as the CF-18s - and sources say the government is concerned about resurrecting memories of the four second-hand subs Canada bought from the U.K. One of those vessels, HMCS Chicoutimi, caught fire while crossing the Atlantic in 2004, killing a naval officer and injuring nine other sailors.
The move to try to acquire fighter jets from Australia coincides with the US government's decision, based on a Boeing complaint, to hit Bombardier with nearly 300 per cent duties on its CSeries civilian passenger jet. At the time, Prime Minister Justin Trudeau and his top ministers said Ottawa would not do business with Boeing as long as it was engaged in a dispute with Bombardier. It would be a deeply unfortunate outcome.
The final ruling in the case is expected next year, but the relationship between Boeing and Canada has nosedived since. It's not just the company but countries.
Shares of Boeing fell 0.86 percent during Tuesday trade on the New York Stock Exchange.
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The move gives the Mariners $2.55 million available to give the highly coveted Ohtani, while the Angels now have $2.315 million. Rosenthal notes that the Mariners now have $2.55 million in global slot money while the Angels have $2.315 million.
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