April 25, 20 - 4:00 pm - LABS

Boeing walks away from Embraer jets deal

This Saturday, the American aircraft maker Boeing announced that de $4.2 billion deal with the Brazilian Embraer was off. According to the Financial Times, Boeing said that it had tried for two years to finalize the deal, but ultimately negotiations were unsuccessful.

Embraer, in its turn, said that Boeing had “manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay” the Brazilian company has agreed.

Photo: Embraer/Courtesy.

“We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems,” said Embraer in a statement to its investors.

The pandemic of the new coronavirus, which hit the airlines and hundreds of orders placed with the American giant would also have motivated Boeing’s withdrawal from the deal.

The Brazilian company said that it believes it is in full compliance with its obligations under the MTA and that it has satisfied all conditions required to be accomplished by April 24th, 2020.

Embraer scheduled a conference call for the next Monday to better explain its position.