Bombardier Inc only won Delta CSeries contract because of improper government subsidies: Embraer exec

, Canada

Alain Bellemare, left, president and CEO of Bombardier Inc., and Ed Bastian, right, CEO of Delta Air Lines, shake hands in front of a Delta-branded Bombardier C-Series jet in Mirabel, Que., on Thursday, April 28, 2016.

The only reason Bombardier Inc. was able to win a major CSeries order from Delta Air Lines Inc. was because of potentially illegal government subsidies, according to a senior executive at Brazilian competitor Embraer SA.

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Embraer is considering its legal options, including a challenge to the World Trade Organization, Paulo Cesar Silva, the company’s president of commercial aviation, told trade publication Air Transport World (ATW).

“We are looking at the alternatives that we have in order to act against this. Could be the WTO, for instance,” Silva told ATW on the sidelines of the Regional Airline Association convention in Charlotte, N.C. this week.

Embraer spokeswoman Alyssa Ten Eyck confirmed that the quotes are accurate and reflect the company’s views.

In late April, Bombardier announced that Delta had placed a firm order for 75 CS100 aircraft with options for 50 more, making it the CSeries’ largest customer. The deal was touted as a “turning point” for Bombardier, which had struggled to generate new orders for the jetliner amid fierce competition from Embraer, Boeing Co. and Airbus Group SE.


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