ITC Inv. Nos. 701-TA-578 & 731-TA-1368 (Final)

PUBLIC DOCUMENT

BEFORE THE

UNITED STATES INTERNATIONAL TRADE COMMISSION

IN THE MATTER OF

100- TO 150-SEAT LARGE CIVIL AIRCRAFT FROM CANADA

PETITIONER THE BOEING COMPANY'S HEARING PRESENTATION

Wilmer Cutler Pickering Hale and Don LLP 1875 Pennsylvania Ave., NW Washington, D.C. 20006

Counsel to The Boeing Company

December 18, 2017

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U.S. International Trade Commission Hearing

December 18, 2017

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Opening Remarks Robert T. Novick Wilmer Cutler Pickering Hale and Dorr LLP

Airbus-Bombardier Seeking to Circumvent AD/CVD Duties

PARTNERSHIP HOLDS THE RIGHT INGREDIENTS TO BOMBARDIER MORE THAN DOUBLE THE C SERIES PROGRAM VALUE

Accelerates and strengthens the C Series COMMERCIAL MOMENTUM through Airbus' SALES, MARKETING and GLOBAL NETWORK

Offers SUPERIOR VALUE TO AIRLINE customers by fully serving the high-volume single aisle market from 100 to 240 seats

Reenergizes the C Series production ramp up, offering a SOLUTION to address the trade case

Leverages Airbus' OPERATIONAL AND SUPPLY CHAIN organization into significant production COST SAVINGS

Solidifies QUEBEC as the C Series' GLOBAL HEADQUARTER and PRIMARY ASSEMBLY LINE, and introduces Airbus to the Canadian aerospace sector

Source: Bombardier presentation, "Partnering to Realize the C Series' Full Potential" (Oct. 16, 2017) (emphasis added).

Copyright 0 2015 Boeing All rIghLs reserved 3

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90 85

75

120

C Series Production Ramp-Up Plan for Mirabel, Quebec

2016 2017 2018 2019 2020

• Min Delivery Max Delivery

Sources: Stephen Trimble, Bombardier details five-year CSeries ramp-up, Flight Global (2015) (Petition Exhibit 103)

Copyright V2 2015 Boeing. All rights reserved.

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Presentation of Robert T. Novick Wilmer Cutler Pickering Hale and Dorr LLP

Airbus-Bombardier Seeking to Circumvent AD/CVD Duties

PARTNERSHIP HOLDS THE RIGHT INGREDIENTS TO BOMBARDIER MORE THAN DOUBLE THE C SERIES PROGRAM VALUE

Accelerates and strengthens the C Series COMMERCIAL MOMENTUM through Airbus' SALES, MARKETING and GLOBAL NETWORK

Offers SUPERIOR VALUE TO AIRLINE customers by fully serving the high-volume single aisle market from 100 to 240 seats

Reenergizes the C Series production ramp up, offering a SOLUTION to address the trade case

Leverages Airbus' OPERATIONAL AND SUPPLY CHAIN organization into significant production COST SAVINGS

Solidifies QUEBEC as the C Series' GLOBAL HEADQUARTER and PRIMARY ASSEMBLY LINE, and introduces Airbus to the Canadian aerospace sector

Source: Bombardier presentation, "Partnering to Realize the C Series' Full Potential" (Oct. 16, 2017) (emphasis added).

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C Series Commercial Aircraft website re,

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Optimized for the 100- to 150-seat market segment

How Bombardier Has Defined the Market

Source: Bombardier website, Commercial Aircraft, http://www.bombardier.com/en/aerospace/commercial-aircraft.html (last accessed December 17, 2017) (emphasis added).

Copyright rid 2015 Beeing. All rights reserved 10

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Presentation of Jerry Nickelsburg, Ph.D. Professor of Economics, UCLA

CS100 and CS300 CERTIFIED

SUCCESSFUL EIS

—20 AIRCRAFT IN SERVICE

BACKLOG BUILDING

DELTA AIR CANADA

Airbus Enhances C Series Commercial Momentum

PARTNERSHIP ACCELERATES THE PLAN / OPENS NEW OPPORTUNITIES BOMBARDIER

Source: Bombardier, Investor Presentation, "Partnering to Realize the C Series' Full Potential (Oct. 16, 2017) (emphasis added).

Copyrighl S0 2015 Boeing. All rights reserved. 13

20 15

90

C Series Production Ramp-Up Plan for Mirabel, Quebec

120

35 30

55

45

85

75

2016 2017 2018 2019 2020

4 Min Delivery Max Delivery

Sources: Stephen Trimble, Bombardier details five-year CSeries ramp-up, Flight Global (2015) (Petition Exhibit 103)

Copyright 0 2015 Boeing. All rights reserved. 14

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Presentation of Charles Anderson Principal, Capital Trade

4,000

3,500

3,000

2,500 L.

*5 2,000 '07 •-•

2 1,500

1,000

500

INE

A320neo Max 9 Max 10 A321 neo Max TBD

Source: Flight Ascend Expert Report, Chart 9 at 26 (Attachment A to Bombardier Pre-Hearing Brief) (emphasis added).

Copyright C 2015 Boeing. All rights reserved.

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Commonality Does Not Equal Interchangeability

• From Airbus Website:

"Fifteen of the company's aircraft models, from the 100-seat A318 to the double-deck A380 . . . feature nearly identical flight decks and similar handling characteristics. This commonality

enables Cross-Crew-

Qualification of pilots . . ."

Source: Airbus website, "Passenger Aircraft — Commonality" http://www.airbus.com/aircraft/passenger-aircraft/commonality.html (last accessed December 17, 2017) (emphasis added). Copyright 2015 Boeing All rights reserved 19

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