Boeing sues Embraer after joint venture deal

The American concern Boeing filed an arbitration lawsuit against the Brazilian aircraft manufacturer Embraer due to the disruption of the transaction to create a joint venture, reports Reuters.

According to the agency, Embraer filed a lawsuit against Boeing earlier, since a US concern had canceled an agreement on the production of medium-haul passenger airplanes in late April, in which the American manufacturer would receive an 80% stake. The cost of the joint venture was estimated at $ 4.2 billion.

It is noted that Boeing has withdrawn its offer, accusing partners of non-compliance with the terms of the transaction. The Brazilian side rejected these allegations.

According to TASS, Embraer after the failure of the deal with Boeing does not negotiate the creation of a joint venture with the Russian corporation Irkut, as previously reported by the Brazilian media. The head of Brazil, Jair Bolsonaru, said that the authorities do not exclude the possibility of finding a new partner for the joint venture.

We add that Boeing plans to spend about 2.5 thousand employees in the United States on a voluntary unpaid leave due to a reduction in air travel amid a pandemic.

Graduated from Embry-Riddle Aviation University with a master's degree in aviation science. He began his career as an aviation researcher in local periodicals. Has a pilot license. Now are the author and developer of the Plane Worlds.