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Embraer and Boeing propose defence partnership – Suppliers Share Wrap

Analysis

Boeing has proposed a partnership with Embraer to manufacture fighter aircraft in Brazil and cooperate on as many as 10 other projects. The Brazilian Air Force has issued a tender for 36 new fighters, which Boeing, Saab and Rafale are competing for. Boeing has also reportedly expressed interest in Embraer's new KC-390 military transport, which Embraer hopes will first fly in 2014. Embraer has signed agreements with Argentina, Portugal, Chile, Colombia, Venezuela and Czechoslovakia for development of the aircraft.

Summary
  • Boeing proposes partnership with Embraer for fighter aircraft manufacturing in Brazil.
  • Brazilian Air Force issues tender for 36 new fighters, with Boeing, Saab, and Rafale competing.
  • Boeing expresses interest in Embraer's KC-390 military transport aircraft.
  • Embraer signs agreements with several countries for the development of the KC-390.
  • Embraer shares decline, while Boeing shares gain.
  • EADS announces departure of Production Chief and plans to appoint a replacement from outside the company.

Embraer shares were down 1.9% yesterday, Boeing shares gained 0.8%. Shares in Zodiac aerospace recovered 2.4% yesterday, after plunging late last week. Safran confirmed last week that it would not make a bid for the French aerospace manufacturer.

Shares in EADS dipped 2%. The company announced that Production Chief, Gerald Weber, who has been with the company for four years, will leave at the end of Mar-2011. His has not been announced but will be from outside EADS and will be appointed in early 2011.

Selected Original Equipment Manufacturers daily share price movements (% change): 22-Nov-2010

Selected Aviation Suppliers & Leasing daily share price movements (% change): 22-Nov-2010

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