Industry Boeing and Embraer confirm talks about combination

In October Airbus and Bombardier announced to become partners on the CSeries program. Airbus took over the regional jet program and acquired 50,1% in CSeries Aircraft Limited Partnership (CSALP).

Two months later two major competitors are discussing a similar cooperation. Boeing and Embraer have confirmed talks about a potential combination. The possible takeover of Embraer could improve Boeings position in the regional jet segment. Boeing’s smallest aircraft of the Boeing 737 MAX family, the B737 MAX 7 has received only few orders so far. Embraer product portfolio with the next generation of E175-E195 could allow the US aircraft manufacturer to increase its position in the competition with Airbus and Bombardier. After the acquisition of the CSeries program it is unclear whether Airbus will continue sales of its in-house competitor, the Airbus A319. 

Embraer’s new E190-E2 jet is expected to enter service with Wideroe in April 2018. The jet is competing with Bombardier’s CS100 in the regional jet segment. The larger E195-E2 will compete with Bombardier’s CS300, Boeing’s B737 MAX 7 and the Airbus A319.

Boeing and Embraer are awaiting word from the Brazilian government on whether it would sign off on the possible combination. The Wall Street Journal reports the Brazilian government has a so-called golden share in Embraer that gives it veto power over such a transaction.