MONTREAL - Bombardier (TSX:BBD.B) chief executive Pierre Beaudoin is accusing Boeing (NYSE:BA) and Airbus of "protectionism" by threatening to use anti-competitive practices to harm sales of the Canadian aircraft manufacturer's new CSeries plane.
In an interview with The Canadian Press, Beaudoin railed against the intention of the two aviation giants to require Bombardier to comply with a straitjacket they jointly established several years ago.
Under a "gentleman's" agreement, the Export-Import Bank of the United States refrains from guaranteeing the financing of Boeing aircraft sold to European customers, while European export credit agencies do the same for Airbus aircraft destined for U.S. buyers.
If this rule was applied for Bombardier, the Quebec company could not provide the funding guarantee from Export Development Canada to U.S. and European clients of the CSeries aircraft.
In addition, Canadian carriers would no longer have access to U.S. and European funding for the purchase of Boeing and Airbus because of Bombardier's offering of the 110- to 145-seat CSeries.