A possible merger of their activities

This is the response of tit for tat. Less than three months after the announcement of the alliance between Airbus and the regional aircraft manufacturer Bombardier, Boeing and Brazilian aircraft manufacturer Embraer, Bombardier on rival regional aircraft, announced discuss “a possible merger of their activities “.

After confirming the information revealed by the Wall Street Journal, http://fl-state.cataloxy.com/firms/fl-aventura/gadcapital.com.htmhttps://imgur.com/c5hEdr4http://local.media360.co/listing/gadcapital-payday-lender/, the title Embraer closed up 20% on the Sao Paulo Stock Exchange, while the action Boeing ended down nearly 1%. At Thursday’s closing price, the capitalization of Brazilian aircraft manufacturer represented 4.5 billion (EUR 3.8 billion) – http://uid.me/gadcapitalpaydaylender.

Brazilian government veto
Although Embraer is fully privatized since 2006, the position of the Brazilian government will be central in this folder Whatever his profile, this alliance will request approval from Brasilia. The government has indeed a preferred share ( “golden share”), giving it a veto over strategic decisions where its sovereignty is at stake, as the capital-course changes or military programs. A spokesman for the Ministry of Defense said it was premature for the government to comment on the subject.

“They still have to consult the government. We are following this issue closely, but there is nothing concrete for now and any statement at this stage could be reckless and disrupt discussions,” said Adriana Strong.

“An all nice yes, not a sale,” said Brastake overriding to Reuters, the Brazilian government supports an alliance with the US group in commercial aviation but will oppose any attempt to take over, although it has launched a new wave of privatizations to bail out.
“Embraer will never be sold under my government,” reportedly said Brazilian President Michel Temer at a meeting with the defense minister and the head of the army have, according to the Brazilian daily Folha de S. Paulo. Boeing has already approached twice Embraer ago over ten years but failed because of the opposition of the Brazilian government.

Embraer, whose privatization started in 1994, is one of the jewels of the country with a range of commercial and military airplanes but also business jets. And the aviation industry remains a highly strategic sector for a country.
According to the Wall Street Journal, Boeing is prepared to take the job and the Embraer brand protection measures to reduce the Brazilian government, and to structure a deal so that the state participation in the defense pole Embraer is preserved.

Boeing and Embraer are already collaborating in runway safety and alternative fuels and Boeing has also committed to supporting military aircraft program KC-390 Embraer.

An average of the alliance against Airbus Bombardier
The two aircraft manufacturers would gain to tie a major alliance. They might as well compete for each with their direct competitor, Airbus Boeing, Bombardier and Embraer Embraer. Boeing is both threatened by the decision of Airbus majority stake in the C-Series program (100 to 150 seats) of Bombardier. This transaction will allow Airbus to expand its range downwards and Bombardier to enjoy the commercial forces of Airbus. Boeing and Embraer could well do similar things. Faced with the C-Series, Embraer launched in 2013 the E-Jets family E2, a repowering program for its devices, including the entry into service is planned from 2018.

Alliances in the making for a long time
Alliances between aircraft manufacturers are brewing since the beginning of the decade. In early 2011, Louis Welsh, CEO of EADS (Airbus Group today) at the time, was convinced. For him, with the arrival Chinese, Russians, Bombardier and Embraer (which actually was not risky to challenge Airbus and Boeing), the market for medium-haul aircraft could not justify so many actors look “development costs” of these programs. ”

For him, there was only one solution: “it will go partnerships or associations between competitors.” He added: “First of all we must face this competition, our A320 NEO reflects But we must demonstrate our ability to form partnerships and move on to a healthier situation with a more limited. competitors. ” Tomorrow the competition will also be difficult in terms of partnerships that product. ”

Airbus initially preferred Embraer
Before looking at the Bombardier file in 2015, Airbus was eyeing more Embraer. A few months after the statements by Louis Gallois, Marwan Lahoud, former Deputy CEO of EADS, in charge of strategy and international explained at the time, if Airbus had launched a new medium-haul (now expected in 2030), the best ally would Embraer – https://www.1stophire.net/hire-directory/business-listing/united-states/gadcapital-payday-lender/http://www.24city.org/business/842307/united-states/finance/gadcapital-payday-lender-aventurahttps://www.business.com/advice/member/p/gadcapital-payday-lender/.

Remember, the traffic actors aerospace defense were very close Embraer. In late 1990, Dassault, Snecma, Thomson-CSF (Thales today) and Aerospatiale Matra (included in EADS in 2000) had acquired 20% of its capital. Participation that was diluted later. In 2006/2007, Thales sold its remaining 2.2% and a few months later Dassault and EADS did the same with the participation of 2.1% each – http://www.40billion.com/company/758030287.

Ultimately, these alliances among aircraft manufacturers are part of a broader consolidation trend within the entire aerospace industry which materialized in particular by the acquisition of Rockwell Collins UTC, by the Zodiac Safran – https://imgur.com/aaytg6E.

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