Boeing

Introduction

Boeing’s long-standing relationship with Canada dates back nearly 100 years. Today, Boeing is a leader in the Canadian aerospace industry — contributing more than CA$ 4 billion annually to the country’s economy and supporting more than 17,500 jobs through direct employment and our 560 suppliers from coast to coast to coast.

Boeing values our relationship with Canada as a customer and supplier-partner for both our commercial and defence businesses — today, tomorrow and always.

Committed to Canada

By the Numbers

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Get the Facts: the Boeing-Bombardier Trade Dispute

Global trade only works if everyone follows the same rules. That creates the greatest value for Canada, the United States and the aerospace industry.

Bombardier is selling C-series airplanes for more than $10 million less than they cost to build. Bombardier is also selling the aircraft in the U.S. at prices millions below what they charge in Canada. Government subsidies to Bombardier have enabled these violations of long-established international trade rules. An independent third party, the International Trade Commission, is now looking at the facts in this case.

  • The Airbus and Bombardier partnership changes nothing. The C-series Joint Venture announced by Airbus and Bombardier is a clear attempt to get around U.S. trade laws. The announced deal has no impact or effect on Boeing’s product strategy or the pending trade case. Any duties finally levied against the C-series will have to be paid on any C-series airplane – or part – imported into the U.S. The proposed partnership does not remove the underlying, trade distorting assistance from governments, and will only deepen our resolve to seek a level playing field in all markets.
  • The C-series is in direct competition with the Boeing 737. Contrary to what Bombardier has claimed, the C-series and the 737-700/MAX 7 are direct competitors. In fact, the CS100 and 737-700 have already competed directly in a 2015-2016 competition — a campaign that Boeing won, but only after sharply reducing its prices in order to compete with Bombardier’s subsidized pricing. And even Bombardier does not dispute that the CS300 competes head to head with the 737-700 and MAX7.
  • This trade case is about fairness. Taking government subsidies and using them to offer below-production-cost pricing on aircraft is a violation in the U.S., and the laws are well-known. Bombardier can sell its aircraft anywhere in the world, including the U.S. Boeing welcomes the competition. But all sales must follow the laws and international agreements.
  • U.S. Export-Import Bank financing does not go to Boeing. Boeing doesn’t receive a single penny in funds or financing from the Export-Import Bank. When operational, the bank enables non-U.S. customers of Boeing products to purchase the loan guarantee they need to acquire commercial financing. The Export-Import Bank does not hand out subsidies.
  • The World Trade Organization has dismissed the vast majority of subsidy claims against Boeing. Boeing does not receive subsidies and is committed to abiding by international trade rules, including those set by the World Trade Organization. In fact, the WTO has dismissed the vast majority of claims against Boeing, and in the narrow areas where final WTO rulings went against the U.S., Boeing and the United States government have fully complied with WTO rulings.

Boeing is a critical part of the Canadian aerospace industry. Boeing contributes CA$4 billion annually to the country’s economy, representing nearly 14% of the total economic impact driven by the entire Canadian aerospace industry. Boeing has a proven commitment to Canada, supporting 17,500 jobs across the country through direct employment and Boeing’s supplier network of more than 560 Canadian companies operating coast to coast to coast.

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History

Bill Boeing & Eddie Hubbard historical image

In March 1919, as part of the Canadian Exposition, William “Bill” Boeing and pilot Eddie Hubbard flew 60 letters from Vancouver, British Columbia, to Seattle in Boeing’s C-700 — the first international airmail to reach the United States.

Boeing began business operations in Canada in 1929, forming Boeing Aircraft of Canada. Here Boeing produced the first transport airplanes built in western Canada.

During the second world war, Boeing expanded production in Canada and built a manufacturing factory on Sea Island, near the Fraser River, in 1939.

The Sea Island plant built PBY Catalina Aircraft for off-shore air patrols, and the middle section of the B-29. Boeing Canada built 362 PBY flying boats and amphibians designed by Consolidated Aircraft of San Diego. They also built 16 British-designed Blackburn Shark torpedo aircraft purchased by the Royal Canadian Air Force.

In 1969, Boeing announced that a new CA$ 4.4 million Boeing Aircraft Structural fiberglass plant would be built in Manitoba. The new plant was built near the Winnipeg International Airport on a 136 acre plot of land.

The Murray Park plant opened in Winnipeg in 1971. Employing only 57 skilled workers, the site’s packages included wing-to-body fairings for the 727, 737, and 747 aircraft as well as WASCAN bathware. By 1976, 400 people were employed by Boeing Winnipeg.

During the 1980s, the Boeing Winnipeg site expanded its facility and added engine strut fairings and military target programs to its workload.

Another expansion brought the Boeing Winnipeg site to 520,000 square feet in the 1990s.

Boeing’s presence in Canada continues to thrive and expand. It was recently named a tier one partner to the new 787 Dreamliner program and is responsible for the wing-to-body fairing, main landing gear doors, and the vertical fin fairing for the program lifecycle.

Boeing Partnerships in Canada

workers in Canada

Canada is home to one of the largest international supplier bases for Boeing — including more than 560 major suppliers spanning every region of the country. Canadian partners provide aerospace parts for all Boeing commercial airplane models and nearly all defence programs, including the AH-64 Apache, V-22 Osprey and CH-47 rotorcraft, F/A-18 and F-15 fighter aircraft, P-8A maritime patrol aircraft, the C-17 Globemaster III airlifter and aircraft trainers.

According to a Boeing study, combined with the Boeing facilities, this supply network significantly contributes to the Canadian economy by generating more than CA$ 3.8 billion in economic benefits annually.

Boeing is a global leader in developing and implementing industrial partnership programs in more than 40 countries worldwide, including Canada. Boeing has worked with Canadian companies under the government’s Industrial and Technological Benefits (formerly Industrial and Regional Benefits) program to perform business worth more than CA$ 9.4 billion in Canada, with another CA$ 2.6 billion in high-value programs currently underway.

Boeing is also partnering with Canada to develop new technology. In 2002, Boeing initiated the process that led to the creation of the successful Composites Innovation Centre (CIC) in Winnipeg, a not-for-profit composite materials research organization that develops new materials and processes for the industry. Through engagement with the CIC, Boeing has provided funding to support the Canadian Composites Manufacturing Research and Development consortium, a teaming of industrial and research organizations across Canada seeking to develop new composite manufacturing processes.

In February 2013, Boeing became the founding industrial member of the University of British Columbia’s Composites Research Network, a group working with Canadian scientists to create practical applications of new composite manufacturing discoveries.

Boeing in the Community

Boeing’s corporate citizenship reflects its impact on communities by producing value-added products and services as well as through responsible business practices and by addressing social issues. Boeing employees are generous; they use their time, talent and personal resources to help maintain the success and health of communities around the world. Boeing has created partnerships that offer opportunities to inspire, inform and engage others, including employees, as part of its Boeing Global Engagement (BGE) program.

Boeing Winnipeg, Boeing Canada and Boeing Vancouver partner with many local and national community organizations. Boeing Winnipeg’s partners include the United Way of Winnipeg and Siloam Mission, whose Building Futures/MOST program offers employment training to transition the less fortunate off the streets. Boeing Vancouver (previously Aeroinfo) partners in 2015 included: ArtStarts in Schools, which provided interactive art activities to inner-city children through its Making Creative Connections program; and Frontier College, whose Indigenous Summer Literacy Camp program builds literacy and general learning skills among children and youth in First Nation communities where support and resources are limited. Boeing Ottawa’s partners in 2016 were Prince’s Operation Entrepreneur and Veterans Transition Network (continuing from a successful partnership in 2015), which assists veterans and their families with the transition from military life to civilian lifestyle. In 2016, we also supported Mealshare, a program that partners with local restaurants. When a customer orders an item that has the Mealshare logo by it, Mealshare provides one meal to a youth in need.

Boeing Winnipeg was awarded the first Canadian Manufacturers & Exporters Community Contribution Award in 2015. This award is presented to a Manitoba company that has demonstrated a commitment to supporting and building the community. This was evidenced through financial support, volunteering, participating in and organizing improvements, and being involved in initiatives that develop the social and economic landscape. Boeing Winnipeg is considered a role model in creating a positive image for the manufacturing sector.