The deal comes days after a similar deal finalised Boeing rival Airbus’ purchase of Bombardier’s C Series.
Just days after the finalising of a previously announced C Series transaction between Airbus and Bombardier, where Airbus now owns a 50.01% majority stake in C Series Aircraft Partnership, Boeing has revealed it will be taking over the commercial-jet business of Bombardier rival Embraer.
The US aerospace giant says the move will extend its reach into the market for smaller passenger planes.
The deal with the Brazilian company further casts the global aerospace landscape into an effective duopoly for planes with more than 150 seats.
With their respective agreements, the two aircraft makers are preparing for an intense new wave of competition in the coming years from emerging single-aisle plane manufacturers from China, which was recently tested in Iceland, and from Russia.
A Boeing-Embraer deal should restore parity in the Boeing-Airbus duopoly following Airbus’ purchase of the efficient C-Series. Both of the big players are clearly extending their reach into the market for smaller aircraft.
The new agreement, if it goes through, values Embraer’s commercial aircraft operations at $4.75 billion. The Brazilian commercial business will be placed in a new joint venture, with Boeing holding an 80% stake. Embraer keeps just a 20% share, which has irked investors and the media in Brazil.
China’s new aircraft tested in Iceland