A Quebec Superior Court judge has ruled that engine supplier Honeywell International must negotiate the cost of its engines with Bombardier.
Last month’s decision states that the American manufacturer has an obligation to negotiate in good faith with Bombardier to try to reduce the price of propulsion systems installed in its Challenger aircraft.
The decision also requires Honeywell to turn over a sales record to an independent auditor to assess whether the company sold turbofan engines at a lower price than its competitors.
Honeywell filed a motion to appeal the decision, a move contested by Bombardier.
Bombardier argued that Honeywell had increased the price of its engines, despite a contractual obligation to lower it over time, while Honeywell said it had not sold the same engine to competitors and refused to fulfill it. of an audit for Bombardier.
The decision notes that starting in the 1990s, the North Carolina-based aerospace giant began designing and manufacturing an engine exclusively for Bombardier, but that the American company later began supplying systems similar to the Montreal aircraft manufacturer’s rivals, Gulfstream Aerospace, Embraer and Textron.
Bombardier is seeking $447 million in damages from Honeywell for overpayments between 2012 and 2017. The court has not issued a ruling on damages.
“Bombardier welcomes this court decision and will continue to pursue the matter, seeking appropriate compensation in accordance with the contracts in question,” the company commented in an emailed statement.
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