What Boeing has actually of Embraer?

The Americans grab the civil division of the Brazilian aircraft manufacturer. The Deal for Boeing several advantages.

After months of negotiations it is ready. The Memorandum of understanding was on Thursday (5. July) signed. Boeing and Embraer are entering into a Joint Venture, in which the Brazilians to bring the whole of their civil aircraft division. The Americans will control the new company. In fact, it is a Takeover.

But what Embraer Boeing? There is the fact that the Brazilian aircraft manufacturer is profitable. In 2017, the civil aircraft division of Embraer, a turnover of 11.4 billion in Real terms (the equivalent of 2.5 billion Euro) was achieved. In an operating profit of 1.8 billion Real, or 390 million Euro. This corresponds to a yield of almost 16 percent.

Hardly Any Overlap

There's a product range that complements the existing offer of the Americans is good for the Other. Boeing's smallest product is the 737-700 with 126 seats in two classes. Embraer plane with a capacity of between 37 and 146 seats in the offer. Overlap there are virtually none. In addition, compounds are in the air travel directly is increasingly important. To fly to the major hubs of large Jets with high capacity. Small flyer for distribution to regional centers.

But that's not all. Boeing is apparently impressed with how quickly and how on time, Embraer, the upgraded E2 Jet family on the market. The Brazilian group is especially in the development of supporting Software to be very strong. In addition, he has an open engineering culture. The experts are active in all areas, in the case of Boeing a Silo mentality. This hinders the exchange of Knowledge across area boundaries, such as the analysts of the consulting company Air Insight stress.

Access to new customers

And something else wins Boeing Deal. The Americans are now also to customers who have previously bought only in the case of Embraer. In the future, you can offer them in a Deal two models. This is more attractive than to have to with two different manufacturers of small quantities of orders.

Here is the Boeing/Embraer is different from the Airbus/Bombardier Deal. The Europeans grabbed only the C-Series, the smaller Version of the CS100 in a Standard Seating for around 120 places. The CRJ-Series (78 to 104 seats) remained at Bombardier, as well as the Turboprops, the Q-Series (68 to 90 places). Airbus is involved in 50 percent of the turboprop manufacturer ATR.

You can see in the above image gallery to the product range from Embraer. and votes:

The Embraer Deal for Boeing sense?

Yes, absolutely. No, not at all.

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Posted by John at .