Brazilian Embraer ready to yield to Boeing's advances

The rapprochement looming between the North American giant and the Brazilian manufacturer is intended to counter the partnership Airbus-Bombardier.

The rapprochement between Embraer and Boeing is clear: the North aerospace giant American and the Brazilian manufacturer are indeed in "advanced discussions" for a alliance in the civil sector conceded a manager of Embraer, following new information on a forthcoming marriage.

According to the latest information available, the scheme being approved would provide for an badociation between the two groups in a joint venture, controlled by Boeing and with a minority stake in Embraer. A separate entity wholly owned by Embraer would be set up to take over the Brazilian manufacturer's military apparatus division.

At the December announcement of talks between the two parties, the Brazilian government indicated that it would not would not accept such a marriage if his national champion was to lose control of his military pole, which notably manufactures training and transport planes. When Embraer was privatized in 1994, the Brazilian government maintained a "golden share" which gives it decision-making power over the group's strategy.

Third largest global manufacturer with 6 billion dollars in turnover and 16,000 employees Embraer is one of the industrial jewels of Brazil with not only a range of civil, military, but also business jets.

The takeover of Embraer airliners would allow Boeing to complete its portfolio by adding more modest aircraft with a capacity of up to 150 seats and to regain ground in the medium-haul segment facing Airbus which has forged a strategic partnership with Canadian Bombardier on C-Series aircraft. The closing of this partnership was formalized on Sunday, allowing the European aircraft manufacturer to offer a range of single-aisle aircraft from 100 to 240 seats.

Faced with the C-Series, Embraer launched in 2013 the E-Jets E2 family, a program for the reengineering of its aircraft, which is scheduled to come into service in 2018.