From Embraer, Boeing is

Boeing gets the Power over Embraers civilian aircraft. The two companies have reached an agreement on their cooperation.

It was not an easy birth. Hardly, last December it became known that Boeing wants to take over the Power in the case of Embraer, there were from Brazil fierce criticism. Even President Michel Temer turned on. He was against a sale, he left from Brasília immediately announced.

Now it comes to it. The two aircraft builders have gone in the last few months on the books. And they found a way out, with which the Brazilian government can be satisfied. On Thursday (5. July) was presented. Boeing and Embraer to establish a Joint Venture in which both are involved. In the new companies the Brazilians will bring your entire business with passenger aircraft.

Fear for a defence business

The new company, which will have its headquarters in Brazil, and a local Management, has Boeing 80 percent. Embraer will hold 20 per cent of the shares. The Americans estimate the value of your share to 3.8 billion dollars. "The agreement with Boeing creates the most important strategic partnership in the aviation industry, which strengthens the leading role of both groups," says Embraer CEO Paulo Cesar de Souza e Silva.

The Joint Venture solution bypasses a large Problem. Brazil has Embraer, a so-called Golden share in spite of privatisation in 1994, it is still a right of veto. Brasília was especially afraid for the defence business of the national group, which is closely linked to the Brazilian army. It now remains in the Embraer group, as well as the business jets.

In response to Airbus and Bombardier

The largest product of the new Joint Venture, the new Embraer E195-E2, with a maximum of 146 seats. The smallest model is Sitting on the E145 with up to 50. Boeing promises the Brazilians that they will be in the group in the future, a leading center for the development. There Embraer has a thickness. The E2 Jet series progressed, for example, thanks to intelligent use of information technology on time.

The merger negotiations between Boeing and Embraer were a response to the Deal to the competition. Previously, Airbus and Bombardier had announced that the Europeans take on the C-Series. The Deal between the Americans and the Brazilians, however, a wider product range.

A duopoly

Through the two Deals, two competitors disappear from the market. Airbus and Boeing now have a Quasi-duopoly, and thus significantly more Power than before. The competitors from Russia and China are not yet strong enough to them dangerous.

The announcement from Boeing and Embraer for the Joint Venture is only a Declaration of intent. However, background noise is hardly more to be expected. In the last few months, the two groups have carriers at all major decision-making for your idea lobby.

You can see in the above image gallery to the product palette of Embraer.

Posted by Jack at .