Industry Boeing and Embraer close to a deal?
The Brazilian newspaper reports, both aircraft manufacturers are getting closer to a possible deal regarding the takeover of Embraer E Jet aircraft family.
According to the local newspaper O Estado do Sao Paulo, Boeing and Embraer are negotiating a partnership which includes a new company in which Boeing would have an 80,01% share and Embraer 19,99%. The joint venture would only include Embraer’s successful E-Jet aircraft family. Military aircrafts and the business jet market, which includes models like the Phenom, will not be part of the deal.
Boeing and Embraer declined to comment on this report.
The US aircraft manufacturer Boeing and Brazil’s Embraer have started to negotiate about a cooperation some months ago, after Airbus announced it has acquired parts of Bombardier’s CSeries program. This acquisition improved Airbus’ market position in the segment for aircraft with 80 to 150 seats. Bombardier’s CS100 and the larger CS300 are an ideal addition to Airbus’ product portfolio with the A320Neo family.
The acquisition of Embraer’s successful regional aircraft program could create a new equilibrium between Airbus and Boeing. Embraer has launched its new E-Jet E2 program in 2013 and delivered a first aircraft some days ago. With its three variants, the E175 (up to 90 seats), the E190 (up to 114 seats) and the 195 (up to 146 seats) the E-Jet family covers the same market as Bombardier’s CSeries.
The E-Jet family is one of the most successful regional aircraft projects in the world with over 1400 units of the first E-Jet generation built. For the new E-Jet E2 generation, Embraer has received over 220 orders.
A potential deal between Boeing and Embraer is depending on the approval of the Brazilian government, which holds a veto power for all decisions regarding Embraer.
Source © AVIPEO.COM