Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Boeing stays in race to supply Canada with fighter jets -sources

Published 2018-02-15, 02:04 p/m
© Reuters.  Boeing stays in race to supply Canada with fighter jets -sources
BA
-
AIR
-
LMT
-
AM
-

By David Ljunggren

OTTAWA, Feb 15 (Reuters) - Boeing (NYSE:BA) Co BA.N , locked in a trade dispute with the Canadian government, has applied to stay in the race to supply Canada with 88 new fighter jets, three well-placed sources said on Thursday.

Companies had until Feb. 9 to express an interest in taking part in a competition for planes worth between C$15 billion ($12.1 billion) and C$19 billion. Ottawa will release its specifications next year, at which point firms can bid.

Boeing did let Canada know it was interested, said the sources, who requested anonymity because they were not authorized to speak to the media. The decision does not mean the firm will necessarily put forward its F-18 Super Hornet.

Boeing did not immediately respond to a request for comment.

The U.S. aerospace company infuriated the Canadian government last year by launching a trade challenge against planemaker Bombardier Inc <BBDb.TO, accusing it of dumping airliners in the American market.

Although a U.S. trade commission dismissed the complaint on Jan. 26, Boeing can still appeal the decision or launch another complaint against the Canadian firm.

Well-informed sources said last week Ottawa has made clear to Boeing that its chances of winning the 88-jet deal would be harmed if it pursued the Bombardier case. experts say Lockheed Martin (NYSE:LMT) Corp's LMT.N new F-35 stealth fighter is likely the front runner. Dassault Aviation SA AVMD.PA and Airbus SE AIR.PA also are expected to compete, but with planes that first flew in the 1990s.

Ottawa says bids will be evaluated in part on the basis of "past and recent economic behavior of potential bidders leading up to the procurement."

That test is months away from being finalised, meaning Boeing has no idea whether Ottawa would be satisfied if it did drop the challenge, the sources said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.