Honeywell to seek ‘relief’ from Bombardier engine price lawsuit in Canada’s highest court By Reuters

© Reuters. File photo: General view of the cockpit of a Bombardier Challenger 650 aircraft under construction at the Bombardier Challenger manufacturing center in Montreal, Quebec, Canada, March 27, 2023. REUTERS/Christinne Muschi

Allison Lampert

MONTREAL (Reuters) – Honeywell (NASDAQ:) says it will ask Canada’s highest court to hear an engine pricing case involving business jet maker Bombardier (OTC:). The dispute has raised concerns among rival airplane manufacturers about disclosing confidential terms of business negotiations. .

This comes after a Quebec judge in December ordered Honeywell to share records containing engine pricing information with independent auditors, causing a stir in the individual business jet manufacturing industry, industry sources said.

Last month, the Quebec Court of Appeal denied Honeywell’s request to hear the case immediately.

“We plan to apply for relief to the Supreme Court of Canada at the appropriate time,” Honeywell said in an emailed statement to Reuters. The Supreme Court of Canada will choose which cases to hear, but it’s unclear whether Honeywell will be successful in its effort.

Bombardier, which uses Honeywell engines in its popular Challenger 350 business jet, claims its U.S. supplier is selling propulsion systems to rivals on more favorable terms despite assurances that the Canadian plane maker would get the best price, according to court papers. .

Engine prices, a major cost of business jet production, are often deeply discounted and closely guarded between suppliers and airplane manufacturers to avoid giving competitors a competitive advantage.

The court order raises concerns that the audit could reveal sensitive information about competitors, including: Textron Co., Ltd. (NYSE:) and Gulfstream Aerospace of General Dynamics Corp (NYSE:), according to filings and sources.

There has been recent debate over these concerns in the aerospace field.

The recent court dispute between Airbus and Qatar Airways has sparked a three-way fight with Boeing (NYSE:) over who can see one of the airline’s contracts with the U.S. plane maker.

These court cases, which were relatively rare before the pandemic, have shone a spotlight on the inner workings of the $150 billion global jet industry.

In a Feb. 15 ruling, the Quebec Court of Appeal also rejected a request by Textron, the maker of Cessna business jets, to act as an arbitrator. Textron argued that measures such as using auditors did not adequately protect information “at risk of leaking into the hands of competitors, primarily Bombardier.”

Textron and Gulfstream declined to comment.

Bombardier said it welcomes the Court of Appeal’s February 15 decision based on its original ruling and will contest any application to appeal to the Supreme Court of Canada.