15-Apr-2019 11:04 AM

Embraer sees USD200m in annual cost synergies from tie up with Boeing

Embraer, via its Apr-2019 institutional investor relations presentation, projected (14-Apr-2019) the planned commercial aviation JV with Boeing will generate USD150 million p/a in cost synergies at its Commercial Aviation business and USD50 million p/a in cost synergies for its Defense and Executive Jets divisions. Key cost synergies are expected to be generated by:

  • Procurement and supply chain optimisation through leveraging Boeing's purchasing volume and scale;
  • Efficiencies from combined sales, marketing, customer support, service footprint;
  • Enhanced vertical integration and strengthened manufacturing capabilities;
  • Shared engineering resources to streamline development and innovation;
  • Other potential revenue synergies include:
    • Reinforce the E-jets' position as global market leader and provide access to new markets as part of a broader portfolio offering;
    • New partnership to unlock the global sales potential of the KC-390 with increased access to the US and other international markets;
    • Leverage Boeing's sales and marketing, global reach and after market support. [more - original PR]

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