Embraer confirms talks with Boeing to create joint venture to produce passenger aircraft

Brazilian aerospace concern Embraer SA and Boeing, one of the world’s largest manufacturers of aviation, space and military equipment, are in talks about a joint venture in the field of production of passenger aircraft.

According to Brazilian media reports, Boeing may notify the government of Brazil a compromise proposal, according to which he will receive 80-90% of the relevant units of the Embraer. This approach eliminates the intersection in the field of military technology that caused the issues with the authorities.

The head of Embraer for the production of passenger aircraft John Slattery during the Singapore Airshow confirmed to CNBC that the company is negotiating the structure of a potential Alliance. The final version isn’t ready yet, but Boeing and Embraer has informed the Brazilian stock exchange on the discussions.

If the deal goes through, Boeing will become the market leader in small commercial aircraft on 70-130 places that traditionally used a regional airline.

This is the next stage in the global competitive war between the two giants of the industry – Boeing and Airbus SE. In October, the European aerospace group and the Canadian Bombardier Inc. signed a partnership agreement for the production of the Bombardier C Series. The Canadian company ranked second in the world in the production of regional aircraft.

The Brazilian government must approve the company’s plans, since he owns the “Golden share” Embraer, which gives the opportunity to veto such a deal.

Embraer was created in 1969 with the government of Brazil. At the time of privatization in 1994 the company was unprofitable and had debts totaling over $200 million currently, the company ranks third in the world among manufacturers of commercial aircraft revenue. State Embraer has about 18 thousand people. The most famous model of the liners have 70 to 100 seats. New model E2 can carry up to 140 passengers.

For comparison, the smallest Boeing has about 130 seats.

Source – https://www.aex.ru/

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