You can read commentary about the possible Boeing Company and Embraer, SA merger by the FlyRadius team and I on the FlyRadius site. In the article, the FlyRadius team and myself focus on the rumor that this a response to Bombardier’s partnership with Airbus to build the C Series jets in the United States. Through the Airbus partnership, Bombardier has avoided extravagant import duties that had been applied to its new jet program.
Not Included Areas
Another area to look at, that was not included in the FlyRadius article, whether this is a move to protect Embraer from any United States import duties, especially with their new Embraer E2 E-Jets.
Major Industry Shift
A merger of the two firms would create a major shift in the commercial aerospace industry. Questions on what would happen to Embraer’s business jet division is another factor that is likely being discussed. Would Embraer Executive Jets be divested from Embraer as part of the merger or would Boeing be okay with keeping Embraer Executive Jets.
Embraer has a new version of its successful E-Jet Series that will be rolled out soon. Boeing may want to enter the regional jet market because of this jet or to help support Embraer’s efforts in making this new version a success.
Long-Term Partnership
Boeing and Embraer have had a long running partnership that has been documented and promoted by Boeing and Embraer in the past. This partnership has created a doorway to a merger between the companies.
Be Sure to Follow FlyRadius
FlyRadius will continue to have coverage on the potential merger on their site. FlyRadius Tower is the section of the site that provides analysis on current and historical topics in aviation. Please be sure to follow the FlyRadius site and their Twitter account to stay updated.
