A Gulfstream Aerospace G500 aircraft arrives at the International Paris Airshow at Le Bourget Airport near Paris in 2023.Benoit Tessier/Reuters
U.S. President Donald Trump’s declaration that he has decertified new Canadian aircraft in the United States sparked confusion and uncertainty in the aviation industry, and spurred accusations the President is using his power to undermine safety functions of regulators.
Mr. Trump made the announcement on Thursday night on social media, along with a warning he would slap 50-per-cent import taxes on planes made by Bombardier Inc. BBD-B-T and other Canadian manufacturers. He made the declaration in an apparent reaction to the Canadian aviation regulator’s move to review changes to U.S.-made Gulfstream business jets.
“Based on the fact that Canada has wrongfully, illegally, and steadfastly refused to certify the Gulfstream 500, 600, 700, and 800 Jets, one of the greatest, most technologically advanced airplanes ever made, we are hereby decertifying their Bombardier Global Expresses, and all aircraft made in Canada, until such time as Gulfstream, a Great American Company, is fully certified,” Mr. Trump wrote.
Where appropriate, aviation authorities certify aircraft for safety reasons, including updates or changes to existing models. Canada is reviewing electronics changes to Gulfstream G700 and G800 models the company made to increase its range and payload, said John Gradek, who teaches aviation leadership at McGill University.
Bombardier to build new manufacturing plant in Montreal as it plans production boost
Published reports on Friday linked the certification process to problems with ice in the Gulfstream’s fuel system. The planes have been operating in the U.S. on a limited-time exemption from certain testing – an exemption Canada has not granted.
A White House official told The Globe and Mail the President did not mean to say all Canadian-made aircraft in operation are decertified – only new ones. That would affect new aircraft made in Canada by Airbus SE, Bombardier, De Havilland Aircraft of Canada and helicopter maker Bell Textron Inc., as well as their U.S. customers.
In a statement, Bombardier said it has contacted the Canadian government in response to Mr. Trump’s declaration and emphasized its U.S. footprint.
“Bombardier is an international company that employs more than 3,000 people in the U.S. across 9 major facilities, and creates thousands of U.S. jobs through 2,800 suppliers. Our aircraft, facilities and technicians are fully certified to [Federal Aviation Administration] standards and renowned around the world. We are actively investing in expanding our U.S. operations,” including a new service centre in Fort Wayne, Ind., the statement said.
Bombardier shares fell by 7 per cent in trading on the Toronto Stock Exchange.
Bombardier’s high-speed Global 8000 jet certified by U.S. regulator
Industry Minister Mélanie Joly told CBC the Gulfstream’s certification process is under way, and the U.S. demands for approvals were made “recently.”
“We believe that this can be resolved,” Ms. Joly said. “The certification process is something we don’t politicize.”
Transport Minister Steven MacKinnon said he has spoken with officials at Bombardier and General Dynamics GD-N. “Canada’s aviation industry is safe and reliable,” he said. “We will stand behind it.”
Mr. Gradek said Gulfstream is upset Bombardier is outselling it in the U.S., and unhappy with delays obtaining Canadian certification of recent updates. “This is a trade war between Gulfstream and Bombardier,” he said in an interview. Rather than lose the sales battle, Gulfstream put pressure on Mr. Trump to ban the Bombardier planes from the U.S., he said.
Demand for private jets high, Bombardier says as it reports strong third-quarter earnings
Richard Aboulafia, managing director of U.S. aerospace consultants AeroDynamic Advisory, called Mr. Trump’s order “neither legal nor safe.” He said such certification matters are routinely handled by respective countries’ aviation authorities. “In terms of safety, it’s an absurdly bad precedent,” he said from Vancouver.
Paul Jebely, an aviation lawyer and partner with New York law firm Sterlington PLLC, said the President has no authority to decertify aircraft. “This isn’t about jets. It’s not about rich people,” Mr. Jebely said. “It’s about whether the United States government and the executive branch in particular can turn a safety switch into a political weapon.”
“The safety regulation in the FAA exists to keep people alive and not to keep score in geopolitical arm wrestling,” Mr. Jebely said.
The FAA referred questions to the White House, which did not address safety questions or the timing of the tariffs. Gulfstream owner General Dynamics and Bell Textron did not respond to e-mailed questions. De Havilland declined to comment.
The relationship between Mr. Trump and Prime Minister Mark Carney has become increasingly tense in recent weeks. In a speech last week at Davos, Switzerland, Mr. Carney said the world order is in a rupture, and that “American hegemony” no longer functions. Mr. Trump responded by saying, “Canada lives because of the United States.”
Lawrence Martin: Carney’s speech makes Canada a threat to Trump
According to aviation data company Cirium, “decertifying” Canadian-made aircraft in the U.S. – normally a responsibility of the U.S. FAA – could affect Delta Airlines, SkyWest, NetJets and others. There are 5,425 of various types of Canadian aircraft in service in the U.S., including 58 Airbus A220s.
Cirium said there are 2,678 Canadian-made Bombardier aircraft registered in the U.S., flown by 1,202 operators. This includes 150 Global Express aircraft in service operated by 115 operators.
Benoit Poirier, a stock analyst at Desjardins Group, in a research note said the headlines are bad for Bombardier, but the threat is likely empty and unenforceable.
Still, the U.S. market is key for makers of private and business jets.
There are about 2,970 Bombardier jets operating in the U.S., many of which are owned by large companies, wealthy people and fleet operators. The market is undersupplied, he said, with a two-year wait for new deliveries.