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Tuesday, January 8, 2019

The Embaer-Boeing Deal Is Waiting Government Approval

Boeing on paper has an 80% share on Embraer commercial airplane business. The government is being wary thinking Boeing could end up with 100% of that deal. Brazil wants to maintain a partnership. Boeing could assimilate Embraer's product with a total Boeing small body using the merge of engineers from Embraer's own on the Boeing payroll. It's a tenuous position for Brazil as there are many workarounds that could lead to a complete Boeing ownership.

Brazil wants a dog in this fight going into perpetuity. Boeing needs to somehow guarantee Embraer/Brazil has a permanent 20% position no matter what Boeing does with its further development of smaller-bodied aircraft coming North to Boeing investors. Embraer does want to keep a 20% share of all things Boeing in the commercial arena. I tend to agree on the surface with Brazil's position but the government needs to step back and not make this current paper agreement void. Boeing must be able to show Brazil's future with this agreement no matter what Boeing does with this segment of Aircraft. It would benefit both the people of Brazil and Boeing that it confirms Embraer product is only an extension of both makers with a commonality interface.

Boeing needs to meet Brazil halfway with this newly acquired smaller body market segment. This would address Boeing's concerns as well as Brazil's political concerns. The deal should be finalized with the support of the nation's people beyond the private enterprise phase it had just entered. Taking Brazil's government to a sidebar would be valuable to both investment groups from Embraer and Boeing. In Brazil, private enterprise must flourish for the benefit of its people and Boeing needs to make that case and give Brazil its guarantee in behalf of Embraer when benefitting Boeing from Embraer's hard-earned aviation progress.

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