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BBC NI business editor James Kerr
"The contract is likely to fuel a major trade dispute between Canada and Brazil"
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Tuesday, 10 July, 2001, 11:43 GMT 12:43 UK
Bombardier wins aircraft contract
Shorts makes the fuselage for the Bombardier regional jets
Shorts makes the fuselage for the regional jet
The parent company of the Belfast aerospace firm Shorts has won an order for aircraft worth more than �1bn.

The order, which the Canadian firm Bombardier Aerospace has won for its regional jets, will mean extra work for the company's Belfast plant where the fuselage is made.

However, according to BBC Northern Ireland business editor James Kerr, the deal is likely to intensify a major international trade row between Canada and Brazil.

Last month at the Paris Air Show, Bombardier announced it had won an order for 50 regional jets - with options for another 30.

This deal is even bigger - for 75 aircraft with options on another 175.

Workforce

The contract is with the US airline Northwest and is for a 44-seat version of the aircraft to be delivered over the next four years.

Because Shorts has already increased its workforce by 1,500 over the last year, the order is unlikely to mean significant extra jobs being created in Belfast.

The deal is likely to intensify a continuing trade dispute.

Bombardier argues that its rival aircraft builder Embraer, receives illegal subsidies from the Brazilian government to help it win orders.

It also says that the Brazilians have failed to comply with international rulings to that effect.

Now it appears that the Canadian government has offered similar terms in securing this deal.

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See also:

18 Jun 01 | Northern Ireland
Bombardier announces contracts
15 Jun 01 | Business
Paris set for air show
13 Jun 01 | Northern Ireland
Bombardier opens �9m facility
15 Jan 01 | Northern Ireland
NI firm to share plane order
23 Jul 00 | Northern Ireland
Order potential for Belfast firm
31 May 00 | Northern Ireland
Double jobs boost for Belfast
23 Jun 00 | Northern Ireland
Shorts picks up manufacturing award
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