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Cake day: July 9th, 2023

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  • Believe it or not, but companies outside of Boeing and Airbus are capable of designing airplanes.

    It’s not just “good” regulation holding them back either - in 2017 Boeing accused Bombardier of “dumping” some CSeries planes because they sold them to Delta at below the retail cost (about a 30% discount). The CSeries was/is a good plane, but took an incredibly long time to get through certification so Bombardier had been losing money and was desperate to sell them. Boeing complained about this discount to the US International Trade Commission who imposed a massive fine on Bombardier. Because of the delays, Bombardier couldn’t afford to fight the fine so they ended up having to give up a 50% stake in the design to Airbus for only $1. The year after, the fines were appealed and overturned, but the damage was already done. Bombardier has since completely sold their stake in the CSeries (one less competitor), and Airbus gets the renamed A220 series for a massive discount.

    As an aside, I can’t argue that the FAA doesn’t do more good than harm in this space generally, but I’m the last ~5 years it’s becoming clear to me that they have a massive blindspot for Boeing in particular.