Excargodog

https://www.cnbc.com/amp/2018/07/05/...t-venture.html

The deal took shape more than two years after the idea was first presented internally to Boeing's board and reflects a longstanding affinity between the two planemakers, a person familiar with the discussions said.
However, the pressure for a tie-up accelerated when Airbus last year announced it would take control of the CSeries jet from rival Bombardier, which had been struggling in its long-running battle with Embraer in the 70- to 130-seat segment of the market.
For Embraer, the Canadian deal put real marketing weight behind a fragile competitor, while for Boeing the transatlantic tie-up threatened to expand the revenue base and cash-generating potential of its European arch-rival.
The two deals represent the biggest realignment in the global aerospace market in decades. The new two-tier duopoly, putting Airbus and Bombardier on one side against Boeing and Embraer on the other, strengthens established Western planemakers against new entrants such as China, analysts say.

They will also partner to support the Embraer KC-390:

05 JULY, 2018 SOURCE: FLIGHTGLOBAL.COM BY: STEPHEN TRIMBLE WASHINGTON DC
Boeing and Embraer will create a joint venture to promote the KC-390 and other defence products and services for new markets and applications, the companies announced on 5 July.

The new agreement expands a six-year-old relationship between Embraer and Boeing on the KC-390 programme. A joint press release issued on 5 July includes only two sentences about the formation of the new joint venture.

“Joint investments in the global marketing of the KC-390, as well as a series of specific agreements in the fields of engineering, research and development and the supply chain, will enhance mutual benefits and further enhance the competitiveness of Boeing and Embraer,” says Nelson Salgado, Embraer's executive vice-president, for financial and investor relations.

rickair7777

Interesting. I wonder what they had to do to get that by the Brazilian government.

velosnow

Pockets were lined no doubt.

Excargodog

They had to split off the military portion so Brazil could maintain control of that portion. This is for only the commercial portion although Boeing is also supporting the KC-390. With Airbus attempting to bail out flagging Bombardier sales by promoting the C-series, Boeing putting its marketing and logistics behind the new E-2s helps Embraer and hurts Airbus. It also provides Boeing with an instantly competitive product in an area Boeing has neglected for quite awhile, the 100-140 Pax medium range domestic market.

ArmyRWP2018

Looks like I will be flying my second Boeing product through acquisition soon.

da42pilot

Word is they’re working on a separate joint venture that would include the KC390, with Embraer remaining majority owner and production staying in Brazil.

trip

I see nothing positive coming from this venture, Embraer jet customers hold on, your about to be taken for ride.

MKUltra

The e190 195 and vthe 737 700 just can't match the economics of the c series or the bus 319..

Boeing is still going to be caught with their zipper down ...

Excargodog

Got comparison stats for the E-195 E-2 and the C series? If so, it would be an interesting post. My understanding is that Embraer is the third biggest manufacturer of passenger aircraft in the world and Bombardier was about to fold until they GAVE Airbus 51% of the C-series. They are now returning to their CRJ roots apparently:


https://www.reuters.com/article/us-b...-idUSKBN1JG1JZ


https://www.bloomberg.com/news/artic...s-to-jets-rail

Cyio

Yeah they were extremely over leveraged on the c-series and something like three years over the expected delivery times.