Khaberni - U.S. President Donald Trump attacked the Canadian private jet industry with harsh statements, causing concern among investors and dissatisfaction among those concerned with the industry.
According to the "Financial Times," these statements have displeased wealthy private jet owners, a group not accustomed to Trump's wrath.
Trump targeted the Canadian government with his aggressive statements, stating that it refused to endorse a new fleet of American-made Gulfstream jets, and declared that based on this refusal, he would cancel the certification of Canadian made Bombardier Global Express private jets, as well as all jets manufactured in Canada.
In his tweet, Trump revealed that the jets Canada refused to endorse include Gulfstream models 500, 600, 700, and 800.
Gulfstream was granted American certification for its G500 and G600 models in 2018 and 2019, respectively.
However, these models have not received certification in Canada, while they have been approved by the European Aviation Safety Agency, denoted by EASA.
Trump affirmed that his retaliatory measures would include imposing tariffs of up to 50% on all jets imported into the United States from Canada unless the refusal is withdrawn and the situation rectified as soon as possible.
Trump's controversial remarks have led to a 7% drop in Bombardier's stock price this week, and the stock has not yet recovered to its previous level.
For those working in the aviation sector, Trump's threats to impose tariffs have caused confusion. Currently, private jet sellers and owners are trying to foresee the repercussions of these statements on their multi-million dollar deals in the private aviation sector.
Speaking to the "Financial Times," Steve Varsano, CEO of "The Jet Business," a company that runs a private jet showroom in London, said that implementing Trump's threats would have a significant impact on the private aviation sector in the United States.
Meanwhile, a U.S. official familiar with the issue explained that Trump's threat will only apply to new jets, and that Washington will not proceed with canceling the certification of currently operating jets.
Investors are still unclear about which types of jets, apart from the "Bombardier Global Express" models explicitly mentioned by Trump, will be subject to the president’s threat.
Investors are also unaware of the procedure Trump will follow in canceling the certification of the Canadian brand, noting that the Federal Aviation Administration is the authority responsible for issuing certifications.
"Bombardier Global Express" jets are very popular among the wealthy in the American market and are typically used as private jets by businessmen and the wealthy.
According to the specialized aviation news site "Pilot Flight," the cost of one of these jets in its latest model is about 80 million dollars, although the final price per aircraft usually varies from the company's standard since customers commonly request modifications to better suit their personal taste before ownership, and these modifications add to the initial price of the aircraft.
Regarding the potential repercussions of Trump's threats being implemented, Paul J. Gilley, a lawyer in the aviation company sector representing many wealthy clients, said that merely the idea of the American Aviation Authority withdrawing a company’s or aircraft type’s certification would negatively impact the value of the company or the aircraft in question.
This issue will also affect the value of jets currently owned by wealthy clients, as Paul J. Gilley noted.
The law stipulates that the country that manufactured and designed the aircraft is responsible for issuing its primary certification, in accordance with international aviation laws.
It is possible that regulatory bodies in other countries may follow the lead of the primary regulatory authority, but this may involve delays.
