Boeing and Embraer Advocate Agreement for Sale of Commercial Jets Division | Economy

"I can not believe that anyone is against this project given the benefits it will bring to Brazil," said Embraer's Managing Director, Paulo Cesar de Souza e Silva , at the Farnborough Aviation Fair, England. "What can be against more jobs, more exports, more technology and more access to capital?", He added. The two companies announced earlier this month a prior agreement under which Boeing will take control of Embraer's commercial aviation division through the creation of a $ 4.75 billion joint venture that will make Airbus partnership with Bombardier.

Last week, Embraer's unions in Brazil maintained a contrary position, claiming that the company had laid off only 300 employees in its main plant in São José dos Campos (SP) this year. The Brazilian company says that it is a "natural turnover of the company" and that "the volume of jobs in Brazil has remained stable."

Boeing Chief Executive Officer Dennis Muilenburg said during the event that the agreement with Embraer will mark a decisive moment in the history of the company and that it will be an important event. there is a "big alignment" between companies.

Muilenburg stated that the agreement will allow Boeing to search for customers with fleet combinations involving the 737 MAX Embraer family models and the Embraer E2 family and their offer more services.

Boeing and Embraer signed an agreement to form a $ 4.75 billion commercial aviation joint venture. The US manufacturer will own 80% of new business and Embraer, the remaining 20%.

Embraer's commercial aviation activities and services were valued at US $ 4.75 billion. Boeing, the largest aircraft manufacturer in the world, is expected to pay $ 3.8 billion for 80% of the joint venture.

In 2017, Embraer's commercial aviation area accounted for 57.6% of the company's net business turnover, with $ 10.7 billion out of a total of 18.7 billions of dollars.

The agreement between Boeing and Embraer must be approved by the authorities, including the Brazilian government, which was supportive of the operation. The acquisition of Embraer's commercial jet division will add Boeing aircraft from 70 to 130 pbadengers to Boeing's portfolio and is expected to boost earnings per share from US companies as of 2020.

In addition to operating in the area of ​​commercial jet aircraft, Boeing and Embraer will deepen the links in sales and services involving the Brazilian cargo KC-390.