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Honeywell will seek 'relief' on Bombardier engine pricing case at Canada's top court
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Honeywell will seek 'relief' on Bombardier engine pricing case at Canada's top court
Mar 11, 2024 4:22 AM

MONTREAL, March 11 (Reuters) - Honeywell ( HON ) said it

will ask Canada's top court to hear an engine pricing case

involving business jet maker Bombardier, in a dispute

that has raised concerns among rival planemakers about revealing

confidential terms of business negotiations.

It comes after a Quebec judge in December ordered Honeywell ( HON )

to share records containing engine pricing information with an

independent auditor, creating a stir within the discrete world

of business jet manufacturing, industry sources said.

The Quebec Court of Appeal last month refused Honeywell's ( HON )

request to immediately hear the case.

Honeywell ( HON ) "intends to pursue relief before the Supreme Court

of Canada in the appropriate time," the company said in an

emailed statement to Reuters. Canada's Supreme Court selects

which cases it hears and it is unclear whether Honeywell ( HON ) will

succeed in its efforts.

Bombardier, which uses Honeywell ( HON ) engines in its popular

Challenger 350 business jets, has alleged the U.S. supplier of

was selling propulsion systems to its rivals on more favorable

terms, despite guarantees that the Canadian planemaker would get

the best price, according to court filings.

Engine pricing, a key cost in business jet production, often

comes with steep discounts and is guarded closely between

suppliers and planemakers to avoid giving a competitive

advantage to rivals.

The court order is raising fears that an audit could reveal

sensitive information about rivals like Textron Inc ( TXT ) and

General Dynamics Corp's ( GD ) Gulfstream Aerospace, according

to filings and sources.

It is the latest dispute over such concerns in aerospace.

A recent court dispute between Airbus and Qatar

Airways triggered a three-way battle with Boeing ( BA ) over who

could see one of the U.S. planemaker's contracts with the

airline.

Such 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 its February 15 decision, the Quebec Court of Appeal also

refused Cessna business jet maker Textron's ( TXT ) request to act as an

intervenor. Textron ( TXT ) had argued that steps like using an auditor

don't adequately protect information "which risks being found in

the hands of its rivals, primarily Bombardier," filings show.

Textron ( TXT ) and Gulfstream declined comment.

Bombardier said it welcomed the February 15 decision by the

Court of Appeal, in line with the original ruling and would

contest any motion to seek leave to appeal to the Supreme Court

of Canada.

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