The US aviation giant Boeing is pairing with the Brazilian Embraer in a joint venture to produce smaller passenger planes.
The deal gives Boeing an 80% share in Embraer’s commercial jetliner business for €3,3bn. If approved, the deal should be concluded by the end of 2019. The news saw Embraer’s shares drop by 10%, as the Brazilian manufacturer holds a minority stake in the business.
The Jewel of Embraer is the E-195, which gives Boeing a competitive edge in the smaller 100-150 passengers market. The move is meant to counterbalance the alliance forged between Airbus and Canada’s Bombardier, whose C-Series aircraft is considered the cutting edge in its category.
Airbus is expected to reveal the first results of its majority stake in Bombardier’s C Series program at an upcoming international airshow at Farnborough, near London. The partnership officially took effect on July 1st.