«We believe boeing has committed a systematic model of repeated delays and violations of the MTA because it is unwilling to complete the transaction given its own financial position and 737 MAX and other business and reputational issues.» The two manufacturers are expected to enter into a joint venture partnership for the development of commercial aircraft. Boeing would thus participate in the smaller market of 90 to 120 seats currently dominated by the Airbus A220. Airbus had bought the A220 from Bombardier, one of Embraer`s biggest competitors. The agreement could have resulted in a brand new turboprop. After Boeing announced the termination of the Master Transaction Agreement (MTA) due to unsuccessful negotiations to resolve certain conditions with the agreement, Embraer followed up Saturday with its own statement that Boeing had wrongly terminated its agreement and that it did not want to pay $4.2 billion. The two companies signed a non-binding agreement for the creation of the joint venture for the first time nearly two years ago. The initial date for the MTA was set for April 24, 2020 if the requirements were not met. Subsequently, Boeing decided to terminate the contract because Embraer did not meet the above conditions. Ahead of the agreement, Boeing and Embraer had already signed an agreement to support C-390 Millennium military aircraft. This agreement was last extended in 2016. Boeing has hinted that this link will continue despite the expiry of this agreement. For the C-390 joint venture, Boeing had agreed on a 49% share. The two companies have entered into a joint marketing and support agreement for the C-390 developed by Embraer since 2012, and that agreement remains intact, Boeing said on Saturday.
«We believe Boeing is in a systematic pattern of delays and repeated violations of the MTA because it is unwilling to close the transaction in light of its own financial situation and 737 MAX and other business and reputational issues,» Embraer said Saturday. «Embraer believes that it fully meets its obligations under the MTA and has met all the conditions that must be met by April 24, 2020. Embraer will take all action against Boing over damages to Embraer as a result of Boeing`s unlawful termination and violation of the MTA. View original content:www.prnewswire.com/news-releases/boeing-terminates-agreement-to-establish-joint-ventures-with-embraer-301047201.html Embraer indicated that Boeing had received the termination of the Master Transaction Agreement (MTA). The company added that it was firmly convinced that Boeing had terminated the MTA, that it had fabricated false allegations as a pretext to try to avoid its commitments, to close the transaction and to pay Embraer the purchase price of $4.2 billion. «We believe boeing has committed a systematic model of repeated delays and violations of the MTA because it is unwilling to complete the transaction given its own financial position and 737 MAX and other business and reputational issues.» This morning in the United States, the news that Boeing has terminated its joint venture agreement with Embraer. According to the manufacturer, Embraer did not meet some of the terms of the agreement, which led to Boeing`s termination of the plan. Embraer strongly believes that Boeing wrongly terminated the MTA, made false allegations as a pretext to try to avoid its commitments, close the deal and pay Embraer the $4.2 billion purchase price.
It`s very interesting. Boeing can no longer resume this transaction. It must return to relevance and has yet to take the steps that the industry wants from it. I`m not sure how Boeing feels that it can get out of it and that at the same time, it can`t get away with it. It`s going to be a bad fight. Let`s hope it doesn`t collapse.