Breaking News
0

China tariffs on U.S. business jets no clear boost to rivals - aviation execs

EconomyApr 16, 2018 06:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. China tariffs on U.S. business jets no clear boost to rivals - aviation execs

By Brenda Goh

SHANGHAI, April 16 (Reuters) - China's planned tariffs on U.S. business jets may do little to buoy rivals despite concerns the moves could create an unequal playing field in the fast-growing China market, aviation executives said in Shanghai on Monday.

China earlier this month announced retaliatory tariffs against key U.S. imports, among which is a proposed 25 percent tariff on U.S. aircraft with an "empty weight" of between 15,000 kilograms and 45,000 kilograms. growing trade spat between Beijing and Washington creates a potential threat to U.S. plane makers including Boeing (NYSE:BA) Co BA.N and Gulfstream, which could see prices of some planes rise. European rivals, however, said it wasn't so clear-cut.

"You have many other parameters that lead to a sale. Price is one of them, but not the only one," said Carlos Brana, senior vice president of civil aircraft at Dassault Aviation AVMD.PA .

The category impacted by the potential tariffs would include General Dynamics (NYSE:GD) Corp's GD.N popular Gulfstream G550 and G650s and the larger Boeing Business Jet 1 that competes against models from European rival Airbus SE AIR.PA . view is that trade war benefits nobody," said David Velupillai, marketing director at Airbus Corporate Jets at a press conference on Monday ahead of the Asian Business Aviation Conference & Exhibition in Shanghai.

Thanks to demand from China's newly minted billionaires and globally minded state-owned enterprises, the growth of its business jet fleet has outpaced that of other countries in the region, making it a key target market for private jet makers.

At the end of 2017, there were 1,179 jets in the Asia Pacific region, up 2.1 percent from a year earlier, according to a report published by aviation consultancy Asian Sky Group on Monday. The largest market is China, which has 339 planes.

Canada's Bombardier Inc BBDb.TO , Gulfstream and Textron (NYSE:TXT) Inc's TXT.N Cessna are currently the top three manufacturers in the region, respectively holding a 26 percent, 25 percent and 19 percent share of the fleet, the report added.

Gulfstream's Senior Vice President of Worldwide Sales, Scott Neal, told Reuters the company had already raised its concerns about the potential tariffs with industry organisations but that it would be premature to talk about any impact.

Boeing declined to comment on the issue when asked about it at a media briefing, referring to a statement earlier this month in which it said nothing drastic had happened yet.

Khader Mattar, Bombardier's vice president of sales for the Middle East, Africa, Asia Pacific and China, told Reuters there was no sign the proposed tariffs was impacting sentiment for the Canadian manufacturer's business aircraft.

"But we will keep monitoring the situation and we will act accordingly," he said.

China tariffs on U.S. business jets no clear boost to rivals - aviation execs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email