SAO PAULO - Boeing Co has taken former partner Embraer SA to arbitration over a failed $4.2 billion deal, the Brazilian planemaker said in a securities filing on Monday night, Reuters reports. Continue reading original article.
The Intelligent Aerospace take:
June 3, 2020 - "This decision is not a surprise for a company currently struggling with the collapse of air travel and reducing demand for its main products: regional and private jets. The COVID-19 outbreak instantly froze the commercial aircraft industry earlier this year as airlines suddenly saw demand for international travel wiped out," says Nicolas Jouan, aerospace and defense analyst at GlobalData. "Embraer already had to deal with the breaking of two joint ventures with Boeing, a decision taken by the American plane maker last April and currently challenged by Embraer for alleged wrongdoings. This partnership concerned commercial aircrafts among other things, and the precipitation with which Boeing decided to terminate the partnership suggests that no recovery should be expected for the regional jet industry for at least a few years. This was followed by Mitsubishi’s decision to shelve its own regional jet program last month in light of the COVID-19 outbreak."
Jamie Whitney, Associate Editor