Meaning of adoption: What is Boeing actually Embraer?

After months of negotiations, the time has come. The letter of intent was signed on Thursday, July 5th. Boeing and Embraer enter into a joint venture, in which Brazilians bring their entire civil aircraft division. The Americans will control the new company. In fact, it's a takeover.

But what does Embraer Boeing actually achieve? On the one hand, there is the fact that the Brazilian aerospace manufacturer is profitable. In 2017, Embraer 's commercial aircraft business generated a turnover of 11.4 billion real (equivalent to 2.5 billion euros). The net result is an operating result of 1.8 billion euros, or 390 million euros. This corresponds to a yield of almost 16%

There is hardly any overlap

On the other hand, there is a range of products that complements the existing supply of products. Americans. The smallest Boeing product is the 737-700 with 126 seats in two classes. Embraer offers airlines with a capacity between 37 and 146 seats. There is no overlap here. In addition, direct links are becoming increasingly important in aviation. At big hubs fly big jets with high capacity. Smaller airmen distribute to regional centers.

But that's not all. Boeing seems impressed by the speed and speed with which Embraer has released the updated E2 Jet family. The Brazilian group is very strong in the development of support software. He also has an open engineering culture. Experts are active in all areas, Boeing has a silo mentality. This hampers the exchange of knowledge beyond the limits, as analysts of the consulting firm Air Insight

point out to new customers

and something else that Boeing wins with # 39; agreement. Americans are now also reaching customers who have previously purchased only Embraer. In the future, you can offer them in one case two models. It's more interesting than having to order small quantities from two different manufacturers

This is where the Boeing / Embraer differs from the Airbus / Bombardier agreement. Europeans have seized only the C-Series, which offers in the smaller version CS100 in a standard seating around 120 seats. The CRJ Series (78-104 seats) remained at Bombardier as well as the Q-Series turboprop (68-90 seats). Airbus owns only 50% of the ATR turboprop manufacturer.

See the Embraer product line in the picture gallery above. and vote: