Brazil's new government has approved a proposed partnership between Embraer and Boeing. President Jair Bolsonaro, who began his term on 1 January, had appeared to express apprehension over the deal in recent days, casting uncertainty over its fate.
The joint venture will comprise Embraer’s commercial aircraft and services operations, with Boeing paying $4.2bn for 80% and Embraer holding the remaining 20%.
The partnership will be led by Brazil-based management while Boeing will have operational and management control of the company, which will report directly to Boeing chairman, president and chief executive officer Dennis Muilenburg. Embraer's board of directors must approve the deal next, before the planned partnership is submitted for approval by shareholders and regulatory authorities in the USA, Brazil and other jurisdictions, says Embraer. On the sales front, US carrier Republic Airways has finalised an order for 100 Embraer E175s and taken purchase rights on a further 100. The firm order is valued at $4.69bn based on current list prices, with deliveries due to start in 2020.