The government of newly-inaugurated Brazilian President Jair Messias Bolsonaro has approved a partnership with Boeing that creates a joint venture using the commercial aircraft and service operations of Embraer. Boeing will have 80% ownership of the new company, Embraer 20%.
The government’s approval comes after the two companies approved terms for the joint venture in December 2018.
The companies have also agreed to the terms of another joint venture to promote and develop new markets for Embraer’s twin-engine, medium-airlift KC-390 military transport jet. Under the terms of this proposed partnership, Embraer will own 51%, Boeing 49%.
Embraer’s board of directors ratified its prior approval one day after the government approved, allowing the two companies to execute definitive transaction documents. The transaction – subject to shareholder and regulatory approvals and customary closing conditions – is intended to close by the end of 2019.
The commercial joint venture will allow Boeing’s global sales and marketing organization to offer Embraer’s E-series regional jets in direct competition with Airbus and its A220, developed as the Bombardier CSeries. Embraer’s KC-390 airlifter is a competitor to Airbus’s slightly larger A400M Atlas, a four-engine turboprop.