Boeing-Embraer breakup still in arbitration
Embraer, which indicated more than a year-and-a-half ago that it would enter arbitration over Boeing's termination of a joint venture (JV) agreement, expects the process to continue into 2022.
Next year could be “an important year for the arbitration”, Embraer chief financial officer Antonio Carlos Garcia told analysts on 5 November. He declined to elaborate, saying the parties are limited in what they are allowed to disclose.
The secretive process began after Boeing in April 2020 cancelled an agreement to form two JVs with Embraer, accusing the Brazil-based company of failing to meet the “necessary conditions”. Embraer insisted it was in “full compliance” with its obligations and would pursue “all remedies” for the “damages” its former US partner had caused.
One JV would have comprised Embraer's commercial aircraft and services operations, while the other would have focused on marketing Embraer's new C-390 Millennium military transport plane. Boeing was to have paid Embraer USD4.2 billion to complete the transaction, which had been years in the making.
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