We've seen consolidation in the airline industry, we've seen consolidation in the hotel industry, and now it looks like we're seeing some consolidation in the aircraft manufacturing industry. In October we learned that Bombardier plans to sell a majority stake in the CSeries program to Airbus. For those of you not familiar with the CSeries,…
Continue reading: Boeing Reportedly In Talks To Acquire Embraer
Share your questions, experiences, and thoughts below.
US Commerce department already decided (yesterday) to add the 292% tariff to C Series no matter where they are built. Still has to pass the US Trade panel. Great move from Boeing .. I wonder if this whole thing was planned like this from the beginning. .. if C series can't make a hold in the market , that leaves the Embrier the only plane with 100-150 market...
No way Brazil will sell. Embraer was created as a protectionist measure and is a point of pride within the country.
This undermines their whole case that the C-series was unfairly competing against their 737 because Boeing are basically admitting that they don't have a plane to compete with the C-series; hence the takeover. They really are just digging a deeper hole.
Seems unlikely Brazil would allow this, but their politicians are pretty easy to... Influence. And Boeing is pretty good at influencing. TBD.
@JJJ: I think you forgot that this is Brazil.
Mensalão, Lava Jato, etc etc.
Boeing can give a cr*pload of money to the government and they would sell it before you could say "pindamonhangaba".
They don't even need to pay that much of money, since "USA is the best". Boeing just need to promise that they will keep jobs, invest a lot of money, and it's done. Then one year later, they change everything and bye bye Embraer.
This is more possible.
This won't happen, it would be against the law actually. The Air Mail Act of 1934 prohibits common ownership of airlines and aircraft manufacturers.
General Motors (who, along with Ford, made airplanes at the time in 1934) was forced to divest Eastern Air Transport, which was renamed Eastern Air Lines.
United Aircraft and Transport Company was broken up into three companies: Boeing, United Aircraft (today's United Technologies) and United Airlines.
So unless a new act of congress passes we won't be seeing a merger anytime soon.
@Matt - Boeing and Embraer are both aircraft manufacturers. So, unless I'm missing something...
The Department of Commerce upheld the C-Series tariff, subject to the upcoming ITC ruling as you mention. But they did not assert anything about the proposed Alabama production line. If final assembly takes place in Alabama, it's not an imported plane, and tariffs do not apply.
Now we know why Boeing went after Bombardier ; to protect Embraer their potential takeover object which is Bombardiers worldwide competitor. Announcing this just after the US decision is especially sleazy. The decision should be immediately rescinded.
If I had a choice I would fly a 717 over any ERJ without even thinking about it.
Well, Temer, The President announced yesterday that it will never be sold under his administration. So I doubt this will happen.
@flieger
But what's your take on the C-300? Best plane in the sky? Rather fly a rehashed DC-9?
The whole sleazy process of screwing Bombardier was to take control of the US regional marker.
And since they can't seem to design anything good enough to compete they use Trump and sleazy US Dept of Commerce clowns to restrict the competition.
I hope this blows up in their face.
From now on "it it's Boeing, I ain't going"
@Flieger,
Why do you dislike the E-Jet (or like the 717) so much? I have nothing against the 717, but the E-Jet is more comfortable (at least in JetBlue's configuration) with no middle seats.
Done deal.
Reuters: Embraer CEO says talks with Boeing are in final stage: report.
https://www.reuters.com/article/us-embraer-m-a-boeing/embraer-ceo-says-talks-with-boeing-are-in-final-stage-report-idUSKBN1JU2WL?il=0
Bloomberg: Embraer Jumps on Report Brazil Allows Boeing Deal to Proceed.
https://www.bloomberg.com/news/articles/2018-07-04/embraer-jumps-on-report-brazil-allows-boeing-deal-to-proceed?utm_source=google&utm_medium=bd&utm_campaign=Markets&cmpId=GP.Markets
cnbc.com: UPDATE 2-Boeing to buy control of Embraer's $4.75 bln commercial jet unit.
https://www.cnbc.com/2018/07/05/reuters-america-update-2-boeing-to-buy-control-of-embraers-4-point-75-bln-commercial-jet-unit.html
Small-mid size planes and a whole bunch of cheap engineering talent.
Reuters: Boeing and Embraer close to final agreement: report.
http://internal.www.reuters.com/article/us-embraer-m-a-boeing/boeing-and-embraer-close-to-final-agreement-report-idUSKBN1JS2LV?feedType=RSS&feedName=businessNews