Flight International - 10 April 2018

THIS WEEK

8 | Flight International | 10-16 April 2018 flightglobal.com

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B

oeing has responded to the

broiling prospect of a trade

war that threatens to engulf com-

mercial aircraft produced in

China and the USA, releasing a

carefully-worded statement de-

signed to highlight that neither

side has taken action.

The 4 April step came after US

President Donald Trump’s admin-

istration proposed a 25% tariff on

Chinese commercial aircraft the

previous day. Beijing responded

within 12h with a package of re-

taliatory tariffs, including taxes on

importing 737-800s.

“Boeing is confident that dia-

logue continues. While both gov-

ernments have outlined positions

that could do harm to the global

aerospace industry, neither has

S

hareholders in GKN voted on

29 March to accept a take over

offer from turnaround specialist

Melrose Industries.

Melrose says that 52.43% of

shareholders voted in favour of

its revised offer, which valued

the UK aerostructures specialist

at £8.1 billion ($11.4 billion). In

January it had tabled an initial,

speculative bid that valued the

company at about £7 billion.

Chairman Christopher Miller

says Melrose is “delighted and

grateful to have received support

from GKN shareholders for our

plan to create a UK industrial

powerhouse with a market capi-

talisation of over £10 billion and

a tremendous future”.

Melrose has “made commit-

ments as to investment in R&D,

skills and people,” Miller notes,

adding that GKN will be “enter-

ing into very good hands”.

The GKN board has reiterated

its criticism that Melrose’s offer

“fundamentally undervalues”

the business. It warns that if the

shareholder acceptance reaches

75% and Melrose delists GKN,

shareholders could be left with “a

minority interest in an unlisted

company” with the “liquidity

and marketability of GKN shares

significantly reduced as a result”.

UK aerospace trade association

ADS has called on Melrose to

provide “binding commitments”

to address “concerns” raised by

GKN stakeholders – including

the manufacturer’s largest cus-

tomer, Airbus – in response to the

takeover bid. “This is a worrying

time for GKN, its employees,

pensioners, suppliers and cus-

tomers,” ADS chief executive

Paul Everitt says. ■

TAKEOVER MICHAEL GUBISCH LONDON

GKN repeats warning after shareholders back bid

DISPUTE STEPHEN TRIMBLE WASHINGTON DC

Boeing seeks peace as trade war looms

Seattle responds to threat of tariffs between USA and China, saying move would “do harm to global aerospace industry”

PROGRAMME

Chinese-Russian widebody venture moves to select suppliers

A year-long joint concept defini-

tion phase launched on 27 March

will select the Tier 1 suppliers for

the Chinese-Russian CR929-

widebody, the CRAIC joint ven-

ture announced on 30 March.

The new phase means China’s

Comac and Russia’s United Aircraft

(UAC) are expanding the scope of

supplier selection beyond engine

suppliers. GE Aviation and

Rolls-Royce are expected to sub-

mit bids by May for the 75,000lb

(333kN)-thrust turbofans planned

for the twin-engined widebody.

Meanwhile, CRAIC will begin

working with suppliers on defining

the requirements for major aircraft

systems including the landing

gear, environmental control sys-

tem and avionics, UAC says.

CRAIC plans to send the rest of

the solicitations for all of the major

work packages on the CR929-

by the end of the year, UAC says.

The supplier selection phase of

the programme should be com-

pleted by the end of 2019, it adds.

The CR929-600 represents a

Chinese/Russian response to the

Airbus A350-900 and Boeing

7 87-9 and -10. If introduced in the

2025-2028 timeframe as planned,

the aircraft would become the first

twin-engined widebody aircraft

produced by either country. ■

Beijing’s carriers represent a key customer base for manufacturer’s 737 series, including the new Max 8

Boeing

yet imposed these drastic meas-

ures,” the company says. “We will

continue in our efforts to engage

both governments and build on

assurances by US and Chinese

leaders that productive talks are

ongoing. A strong and vibrant aer-

ospace industry is important to

the economic prosperity and na-

tional security of both countries.”

The US proposals cast Boeing

in the awkward position of push-

ing against trade restrictions only

a few months after championing

a defeated Trump administration

attempt to slap a nearly 300%

tariff on imports of the Bombar-

dier CSeries.

In this round, Boeing’s fate may

again be decided by the US Inter-

national Trade Commission (ITC).

The panel rejected the proposed

tariff on the CSeries, arguing that

the US airframer was not harmed

by an under-priced sale of CS100s

to Delta Air Lines.

On 15 May, the same ITC

panel will decide on the Trump

administration’s newly-unveiled

package of tariffs on more than

1,000 products, which includes

imports of large Chinese com-

mercial aircraft, such as the

Comac ARJ21. ■

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