Boeing’s Canadian Media Blitz
The mistake
In 2017, Boeing’s airliner division was his cash cow. At that time, management decided to tackle the threat posed by the Bombardier C Series. The American giant has therefore decided to file a dumping complaint against the small Canadian company. This event marked the beginning of the setback in trade relations between Canada and the United States.
Boeing’s complaint was filed just before the Canadian government ordered eighteen F/A-18 Super Hornets from it. Indeed, the Royal Canadian Air Force absolutely needed these planes in order to maintain its capabilities. Obtaining the order would have given Boeing a significant competitive advantage in the tender for the replacement of Canada’s fighter jet fleet. Internally, Boeing’s military division strongly opposed the dumping complaint.
Instead, the Canadian government cancelled the purchase of the Super Hornets in the weeks that followed. Subsequently, he opted to purchase used F18 Hornets from Australia as well as the parts inventory. The move deprived Boeing of a sale of more than $1 billion for the 18 aircraft.
The New Situation
These days, the giant’s commercial aircraft division is in deficit and it is certainly not because of the A220. The company got caught up in a series of quality and performance issues. In the medium term, Boeing’s profitability depends on its military division. Getting the fighter jet fleet renewal contract with Canada has grown in importance over the past two years. We are talking about more than $4 billion for the acquisition of aircraft and $10 billion to $15 billion for the support over the next 20 years.
Four years after the episode of the dumping complaint, Boeing is still paddling in order to make it forget. It has to work harder than its competitors to convince that its offer is the best. It is for this reason that for the past two years she has maintained frequent contact with Canadian trade media. This fall, it is redoubling its efforts with an invitation to visit its facilities in Saint-Louis. According to my American colleagues, this kind of invitation is really not in the habit.
It is in this context that on November 9 will be held a face-to-face and virtual presentation to the Canadian media. We will be treated to the usual presentations, a factory tour, access to a static demo and a simulator session. But to make this day worth it, something new will have to be put on the table. I can’t wait to see what will be added to what we already know. To be continued…
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