Back to news

April 27, 2020 | International, Aerospace

Boeing ends deal, angering Brazilian jet maker Embraer

By: The Associated Press

CHICAGO — Boeing announced Saturday it terminated an agreement to join forces with Embraer, prompting an angry response from the Brazilian jet maker, which threatened to seek damages.

The pair had planned to work together on Embraer's commercial aviation business and to develop new markets for its C-390 Millennium aircraft. They had been working toward an agreement for two years.

Boeing said it ended the agreement after Embraer did not meet conditions laid out by the deal, in which Boeing would have held majority ownership. Over the past few months, the companies had “productive but ultimately unsuccessful negotiations” about the unsatisfied conditions, which was “deeply disappointing,” Marc Allen, Boeing's president of Embraer partnership and group operations, said in a news release.

Embraer issued a statement saying it “believes strongly that Boeing has wrongfully terminated” the mutual transaction agreement and “that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the US$4.2 billion purchase price.”

“We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA (master transaction agreement), because of its unwillingness to complete the transaction in light of its own financial condition and 737 Max and other business and reputational problems,” it added.

“Embraer will pursue all remedies against Boeing for the damages incurred by Embraer as a result of Boeing's wrongful termination and violation of the MTA,” the company said.

The collapse marked the latest mishap for Boeing. The company's best-selling plane, the 737 Max, has been grounded for more than a year after two deadly crashes that led to federal investigations. Those problems, combined with deflated demand for flights due to the pandemic, sharply reduced the company's cash.

https://www.defensenews.com/air/2020/04/26/boeing-ends-deal-angering-brazilian-jet-maker-embraer/

On the same subject

  • Anduril Collaborates with Microsoft to Bring Lattice to the U.S. Army's IVAS Program

    September 19, 2024 | International, Land

    Anduril Collaborates with Microsoft to Bring Lattice to the U.S. Army's IVAS Program

    This partnership includes initial integration of Anduril's Lattice platform into the IVAS ecosystem, leveraging Anduril's software and systems integration expertise, to enhance the capabilities fielded to Soldiers through IVAS.

  • Aviation summit opens amid jet shortages, supply chain turbulence
  • La Commission européenne lance des projets industriels de défense

    June 16, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    La Commission européenne lance des projets industriels de défense

    La Commission européenne a lancé le 15 juin 16 projets industriels de défense pan-européens et trois projets technologiques de rupture. Ils vont bénéficier de 205 millions d'euros de financements à travers un Fonds pilote pour la défense EDIDP (programme européen de développement industriel de la défense) doté de 525 millions d'euros au total sur la période 2019/2020 : technologies portant sur les drones, sur le spatial (réseau de communications et technologie militaires pour satellites), sur les missiles anti-chars, sur les véhicules terrestres sans pilote et sur la cyber. Sur les 19 projets, dont neuf sont des projets PESCO (Coopération structurée permanente), 24 États membres sont représentés à travers leurs entreprises (223 concernées, dont 83 PME). De nouveaux projets européens devraient être signés en fin d'année, dont le drone MALE européen Eurodrone (100 millions d'euros) et le projet de communications militaires interopérables ESSOR (37 millions d'euros). La Tribune du 15 juin 2020

All news