Business

July 6, 2018
 

Boeing, Embraer attempt a joint venture

AP

Boeing and the Brazilian jet maker Embraer will attempt to form a joint venture that would push the U.S. aerospace giant more aggressively into the regional aircraft market.

The new company, which has faced heavy scrutiny from lawmakers in Brazil, is being valued at about $4.7 billion.

The companies said July 5 that Boeing will own 80 percent of the joint venture, and Embraer SA the remaining 20 percent.

Brazilian lawmakers have been hesitant to allow any deal, fearing the loss of control of a major industrial and defense asset.

Embraer is one of Brazil’s industrial giants and the government sees the company, which is involved in defense manufacturing, as strategically important. President Michel Temer had previously rejected selling control of the jet maker to Boeing.

The government has veto power over any change in the company’s controlling interest, an indication of how highly prized it is and how sensitive any deal with foreign investors is.

Any partnership between Boeing, based in Chicago, and Embraer would counter strengthening ties between Europe’s Airbus and Canada’s Bombardier, which have threatened Boeing.

Embraer’s lineup of E-jets would help Boeing counter Airbus’ new majority stake in Bombardier’s C Series planes that have 100 to 150 seats and help it compete with small airliners from China.




All of this week's top headlines to your email every Friday.


 
 

 
Airbus photograph

Airbus delivers first aircraft from Mobile powered by sustainable jet fuel blend

Airbus photograph An A321 for operator JetBlue is the first aircraft produced at Airbus’ U.S.-based A320 Family production line to be partially powered by sustainable jet fuel. Airbus’ A320 Family production facility in the...
 
 
Northrop Grumman photograph

Northrop Grumman unveils ‘Vanguard’ open architecture radar solution

Northrop Grumman photograph Northrop Grumman’s Vanguard radar is a modular, scalable radar architecture that can meet a wide range of mission requirements and integrate into a variety of platforms across domains. Northrop Gru...
 
 

Cubic to deliver next-gen air combat training system for F-35

Cubic Corporation announced Sept. 20 that its Cubic Global Defense business division, was awarded a contract from Lockheed Martin to deliver its latest-generation Air Combat Training System for the F-35 Lightning II. Cubic is scheduled to deliver more than 500 F-35 Training Subsystems over the next four years as part of Lockheed Martin’s F-35 production...