Embraer looks eastwards for potential partners following Boeing pullout

Published: 4 June 2020 - 2:56 a.m.
By: Aviation Business

Embraer’s chief executive Francisco Gomes Neto has said that the plane manufacturer is exploring potential partnerships with countries including India and China after Boeing pulled out from a historic merger deal in April.

On an earnings call on Monday, Mr Neto said that other countries had also shown an interest in partnering with the manufacturer’s commercial jet division, which had been due to join with Boeing.

Brazil’s Embraer in April accused Boeing of wrongfully exiting a $4.2 billion acquisition, which would have seen the US planemaker buy an 80% stake in Embraer’s commercial aircraft division and challenge Airbus’ dominance in the narrow-body market.

Reuters reported last week that China’s state-owned COMAC planemaker and Russian aircraft manufacturer Irkut have expressed interest in a deal with Embraer; but the Brazilian firm denied the claims prior to the earnings call.

In the first quarter of 2020, Embraer lost $292 million amid the ongoing coronavirus pandemic, which has heavily impacted demand for new aircraft.

Embraer is also reported to be searching for cash loans to help it weather the crisis. Staff were placed on paid leave in both January and March.


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