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Boeing and Embraer forge $4.75B jet venture

Boeing and Embraer jets
The Boeing-Embraer deal would add regional jets such as Embraer’s E190-E2 to a lineup that also includes Boeing’s 737 MAX 7 and larger jets. (Embraer Illustration)

After months of negotiations, Boeing and Brazilian jetmaker Embraer today announced a tentative agreement to form a $4.75 billion joint venture that would bring Embraer’s small-size commercial aircraft operations firmly into Boeing’s fold.

The arrangement is a strategic parry to last year’s move by Boeing’s European archrival, Airbus, to partner with Canada’s Bombardier on small-size jets.

Embraer’s engineering expertise could also come into play as Boeing gears up to design and produce a new breed of midsize jet variously known as the New Mid-Market Airplane, NMA or 797.

“This important partnership clearly aligns with Boeing’s long-term strategy of investing in organic growth and returning value to shareholders, complemented by strategic arrangements that enhance and accelerate our growth plans,” Dennis Muilenburg, Boeing’s chairman, president and CEO, said today in a news release.

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By Alan Boyle

Mastermind of Cosmic Log, contributing editor at GeekWire, author of "The Case for Pluto: How a Little Planet Made a Big Difference," president of the Council for the Advancement of Science Writing. Check out "About Alan Boyle" for more fun facts.

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