The American Boeing takes over his European rival Airbus with his Embraer contract

Brazilian Crown Jewel

Boeing is the largest aerospace company in the world with a market value of $ 195 billion (141,000 employees); Recent revenues of $ 93.4 billion include commercial aircraft (particularly long-haul aircraft), defense, space and security systems, military aircraft, weapons, satellites and helicopters . Embraer is by far the third largest supplier after Boeing and its European rival Airbus. The company (18,000 employees) achieved a turnover of $ 5.8 billion last year and is valued at $ 4.2 billion in stock market

Embraer is considered as one of the flagships of the Brazilian industry. The group specializes in medium-haul aircraft from 70 to 100 seats. These are used worldwide, for example, by regional airlines, which fly from small hubs into manageable networks or act as feeders to hubs of major airlines. Embraer is expected to make $ 2.5 billion sales this year on these commercial aircraft; The company will be able to deliver between 85 and 95 machines. The small aircraft division will not be included in the joint venture; This division is expected to generate sales of up to $ 1.5 billion in sales of up to 125 aircraft this year. Embraer's defense and security arm is expected to remain at $ 1 billion in 2018.

Founded in the late 1960s as part of nationalist industrial policy, the company was privatized in the 1990s. and has been publicly traded since 2000. The state has only a minority stake, but remains the last word in terms of strategic decisions. A recovery of Embraers by Boeing Brazil would hardly have been accepted. That Boeing also agreed to cooperate with Embraer's military division as part of the joint venture is likely to be another concession with which Boeing wants to persuade the authorities to approve the deal. agreement.

Indirect Transfer Now Through the Joint Venture The Embraer regional aircraft division in the Boeing Group is expected to save money through the bulk purchase of components, but it will also open up new sales opportunities for Embraer aircraft through Boeing network access. In any case, Embraer would have been too small in the long run to defend against rivals in the regional aircraft market such as Bombardier or emerging competitors like China.

For Boeing, the acquisition of the regional aircraft division is an important step in the Airbus fight for supremacy in the global aircraft market. Competitors have been the dominant players in the large aircraft market for many years. However, Airbus took a majority stake in the mid-range aircraft program of Canadian automaker Bombardier last year, generally broadening its market position. Bombardier entered the regional aircraft market ten years ago, but had to deal with production delays and financial burdens.

Open to archrival

With the handshake between Bombardier and Airbus, the two medium-range planes managed by the back door. Airbus will also manufacture the aircraft at its Alabama plant in the future. Last year, Boeing wanted to take its Canadian competitor out of the market: the American airline Delta had ordered 75 regional aircraft from Bombardier. Boeing accused the Canadian aircraft manufacturer of dumping. However, the fees subsequently collected by the Trump administration were considered unfair by the United States International Trade Commission (USITC) and had to be lifted.