The much-touted “joint flight” by Boeing and Embraer has hit a headwind as the leading partner in the proposed joint voyage, Boeing, has backed down on the mission due to Embraer’s failure to fulfil critical preliminary conditionalities jointly agreed should be provided on or before 24th April 2020, has now brought about the over two years old strategic “preflight brainstorming sessions” to a safe end without casualties on both parties.
The proposed “joint flight” terminated was the planned merger of Embraer’s commercial aircraft business with Boeing which was dubbed, Master Transaction Agreement, MTA, under which the two companies sought to establish a new level of strategic partnership.
According to the statement from Boeing, the parties had planned to create a joint venture comprising Embraer’s commercial aviation business and a second joint venture to develop new markets for the C-390 Millennium medium airlift and air mobility aircraft.
The statement from Boeing communications and signed by, Allison Bone declared that “he planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission”.
Allison Bone said Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.
He announced that “Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions.
Succinctly put, the President of Embraer Partnership & Group Operations,
Marc Allen, said “It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues.”