Bombardier and Honeywell settle lawsuit over engine prices

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MONTREAL - Bombardier Inc. says it has reached an agreement with Honeywell International Inc. to settle a lawsuit relating to the cost of the jet engines it makes for the Montreal-based plane maker.

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Hey there, time traveller!
This article was published 02/12/2024 (402 days ago), so information in it may no longer be current.

MONTREAL – Bombardier Inc. says it has reached an agreement with Honeywell International Inc. to settle a lawsuit relating to the cost of the jet engines it makes for the Montreal-based plane maker.

Bombardier first sued Honeywell in 2016, arguing that it was going against a contractual obligation to reduce the cost of the engines and to give Bombardier the best price, which the company disputed.

About a year ago, a Quebec Superior Court judge ruled that Honeywell must negotiate with Bombardier in good faith on the cost of the engines, with the goal of reducing prices.

A Bombardier Challenger 3500 aircraft is shown under construction at Bombardier's Challenger manufacturing plant in Montreal, Wednesday, April 5, 2023. THE CANADIAN PRESS/Graham Hughes
A Bombardier Challenger 3500 aircraft is shown under construction at Bombardier's Challenger manufacturing plant in Montreal, Wednesday, April 5, 2023. THE CANADIAN PRESS/Graham Hughes

At the time, Honeywell filed a motion to appeal the decision.

Now, Bombardier says the lawsuit and the pending request for appeal are resolved.

The terms of the settlement were not made public.

This report by The Canadian Press was first published Dec. 2, 2024.

Companies in this story: (TSX:BBD)

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