This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
Boeing and Brazilian aircraft maker Embraer have agreed to form a commercial jet joint venture. As reported by Brazil’s Globo TV, Embraer has accepted Boeing’s offer to create a joint venture for commercial jets. The US aerospace giant had been in talks for a potential takeover of Embraer, but the Brazilian government made it clear that it would not allow the acquisition to occur if it involved the weakening of its control of Embraer’s military division.
The joint venture will not involve Embraer’s military division. But could potentially make a Boeing – Embraer aircraft possible.
Immediately following the report, Embraer’s shares rose 5%.
Neither Boeing nor Embraer did not immediately comment on news of the agreement.
At this point, it’s not known exactly what the effect of the deal will be. It could mean that Boeing helps market the new Embraer E2 family of aircraft, which cover the 100-seat market, in which Boeing does not have a real competitor. Its smallest products, the 737-700 and its successor 737 MAX 7, are larger and much heavier than Embraer’s 100-seaters, making them less fuel-efficient. And with archrival Airbus buying the Bombardier C Series jet program, Boeing risks losing out on a lucrative market for highly advanced jets that transport up to 150 people.
Alternatively, the new joint venture could produce a new aircraft for that market. It’s worth noting that manufacturing the aircraft in Brazil would be cheaper than in the US, and with a quality workforce already in place: Brazil has a rich tradition of engineering excellence in aerospace, and Embraer is already the biggest seller of regional jets in the world.
Featured image by Roslan Rahman / AFP / Getty Images.
Know before you go.
News and deals straight to your inbox every day.
WELCOME OFFER: 60,000 Points Terms Apply.
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: Delta Sky Club and Centurion lounge access, $200 annual airline fee credit and up to $200 in Uber credits annually
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
- Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
- 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
- 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
- Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
- Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
- $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
- Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
- $550 annual fee.
- Terms Apply.
- See Rates & Fees