Sunday, April 26, 2020

Boeing ends Embraer deal

Boeing has terminated its $4.2 billion deal with Brazilian aircraft maker Embraer, the company said Saturday. The deal would have given Boeing a bigger stake in the market for smaller jets. Embraer responded Saturday in a press release that it will "pursue all remedies against Boeing for the damages incurred," calling Boeing's decision a wrongful termination. The two had planned to create a joint venture by April 24, but the deadline passed without Embraer satisfying the necessary conditions, according to Boeing, but not detailing the unmet conditions. The Brazilian company said it believes it fully satisfied the deal's conditions. (Sources: multiple, including CNN, 04/25/20, AP via KOMO News, 04/26/20) The deal was in response to the Airbus-Bombardier deal, where Airbus took a majority share in a joint project to build what is now called the A220 passenger jet. A second assembly line for the jet is in Mobile, Ala.,next to the Airbus A320 assembly line. Previous