Boeing-Embraer Deal Blocked by Brazilian Court

Dec 8, 2018

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. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

It’s no secret that Boeing has been eyeing the commercial aviation division of Embraer. The Boeing company has been in talks with Embraer to take a huge ownership position in the company for well over a year now.

Embraer’s main competitor — Canadian based Bombardier — is essentially out of the commercial aviation business after recently selling off it’s C-Series program to Airbus. Which is why it’s no surprise that Boeing is still looking to scoop up the only manufacturer with a real competitor to the new Airbus A220 line.

Embraer E195-E2 Paris Air Show

However, a Brazilian court this week had other thoughts on the arrangement between Boeing and Embraer. The Brazilian government currently has veto power inside the third largest airframe manufacturer in the world and has not been willing to allow the company to move forward with inking the deal. Brazil also has a newly elected government coming into power in January. The judge cited this in his decision, saying that any decision should be put off until the new government assumes power early next year.

The court also said that a lack of oversight between the commercial aviation division and the military arm of Embraer needs to be addressed before the deal moves forward. Currently a two person panel — one from Boeing and one from Embraer — would be responsible for determining what technology and intellectual property will remain sole purview of the military division, where Boeing will have no control.

The court’s ruling hasn’t killed the deal off completely, but simply put it on hold for now. Brazil’s President-elect Jair Bolsonaro has stated he supports the deal. That’s good news for Boeing as they look to finally seal this deal they have been working on for so long and position themselves to be able to complete with Airbus in the short-haul market.

H/T: Reuters

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.