Brazil Workers Party threaten Boeing-Embraer talks; JetBlue goes Airbus
It hasn't been a great few weeks for Embraer. Airbus and Boeing are seeking to bolster their global aircraft manufacturing duopoly, now that Airbus has closed its deal to take a stake in Bombardier’s CSeries narrowbody programme, but Boeing and Embraer are suffering some political headwinds since they agreed to terms for a joint venture in which Boeing will essentially take an 80% stake in Embraer’s commercial aviation business.
The effects of those tie-ups on the global manufacturing industry will be pervasive. And while Airbus is enjoying some momentum from JetBlue’s recent order for the renamed A220-300 (formerly the CS300), over the long term the proposed partnership between Boeing and Embraer could result in deeper collaboration on new aircraft programmes and supply chain management.
But there is a cloud of uncertainty hanging over Boeing as Embraer becomes a pawn in Brazil's upcoming presidential election in Oct-2018. The election in Brazil's always volatile political system could deliver a less business friendly and protectionist candidate as the victor, potentially creating roadblocks for Boeing and Embraer in realising their ambitions. Meanwhile in late-Jul-2018, four congressmen from the left wing Workers Party sought an injunction to prevent the talks going ahead.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.