Addendum
Boeing and Embraer commit to commercial jet joint venture
July 1st 2018
At press time, The Boeing Company and Brazil’s Embraer announced they had agreed to a Memorandum of Understanding that stipulated Boeing would hold 80% and Embraer 20% in a commercial aircraft manufacturing and services joint venture. Read More »
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The transaction priced 100% of Embraer commercial jet aircraft operations at US$4.75 billion and calculated a value of $3.8 billion for Boeing’s equity in the trans-Americas company.
The company will be run by Brazilian-based management, including the president and CEO. Boeing will have operational and management control. Boeing’s executives will report directly to Boeing chairman, president and CEO, Dennis Muilenburg.
The joint venture partners are positioning themselves to offer airlines a commercial aircraft portfolio with a range of 70 to 450 seats and also mid-size freighters. Airplane OEM consolidation comes at a time of increased geopolitical tensions that are complicating global manufacturing and trade partnerships including commercial aircraft production. Embraer targets Asia for its 190 E2 jets.
