End of the alliance between Boeing and Embraer

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Put an end to the planned alliance (joint venture) between the manufacturers Boeing and Embraer After more than two years of negotiations, the collaboration will not advance further.

Boeing announced today that it has terminated its Master Settlement Agreement (MTA) con Embraer, under which the two companies sought to establish a new level of strategic partnership. The parties had planned to create a joint venture comprising Embraer's commercial aviation business and a second joint venture to develop new markets for the C-390 Millennium aircraft..

About the end of the alliance between Boeing and Embraer there are already two versions that are the following:

What Boeing Says

According to the MTA, the 24 april 2020, was the initial completion date, subject to extension by either party if certain conditions were met. Boeing exercised its termination rights after Embraer failed to meet necessary conditions.

«Boeing has worked diligently for more than two years to finalize its transaction with Embraer. in the last few months, we have had productive but ultimately unsuccessful negotiations on unsatisfied MTA conditions. We all aspire to resolve them before the initial completion date, but it was not like that. don't happen «, said Marc Allen, presidente de Embraer Partnership & Group Operations. "It is deeply disappointing. But we have reached a point where continued negotiation within the MTA framework is not going to resolve the outstanding problems..

The planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities., with the exception of the European Commission which was still pending.

Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.

What Embraer says

Embraer firmly believes that Boeing has mistakenly terminated the MTA and made false claims as a pretext to try to avoid its commitments to close the transaction and pay Embraer the purchase price of 4.200 millions of dollars. We believe that Boeing has engaged in a systematic pattern of delays and repeated violations of the MTA, due to your unwillingness to complete the transaction in light of your own financial situation, Boeing 737 MAX and other business and reputation issues.

• Embraer believes that it has fully complied with its obligations under the MTA and that it has met all required conditions up to the 24 april 2020.
• Embraer will seek all actions against Boeing for damages incurred to Embraer as a result of the wrongful termination in violation of the MTA.

Embraer is still a successful company today, efficient, diversified and vertically integrated, with a track record of serving customers with highly successful products and services based on a strong foundation of industrial and engineering capabilities. Embraer is an exporter and developer of technology, with global presence and defense, executive and commercial business. With pride, our employees will continue to provide our customers with the high-quality products and services Embraer depends on every day.

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