Embraer mulls WTO claim against Bombardier after Delta jet deal

Embraer may ask the WTO to probe whether govt subsidies enabled Bombardier to offer its C Series aircraft to Delta Air Lines at below the production cost. Delta agreed last month to buy at least 75 of Bombardier’s jetliners, an order valued at US$5.6b based on list prices. Bombardier has a $1b commitment for investment from Quebec’s govt and is negotiating for federal aid as well. “This causes too big of a distortion in the market,” Paulo Cesar de Souza e Silva, head of Embraer Commercial Aviation, said. “We are analysing the situation, looking for more information and already in talks with the Brazilian govt.” Bombardier’s Q2 results will include an “onerous contract provision” to be recorded as a non-cash charge of $500m in conjunction with 127 C Series purchase agreements. <br/>