Pontifications: Melancholy about Embraer’s 50th year

By Scott Hamilton

June 10, 2019, © Leeham News: Embraer is 50 years old Aug. 19.

This must be the classic case of mixed feelings. By the end of the year, if regulators approve, the marquis business unit, Commercial Aviation, will be spun off and the Embraer name for it disappears into Boeing Brasil-Commercial (BB-C).

Boeing will own 80% of the new joint venture and Embraer retains 20%. Boeing has the governance and chairman. Embraer’s CEO of Commercial Aviation becomes president and CEO of BB-C, but the direction now will clearly be set by Boeing.

Sixty percent of Embraer’s services unit goes into BB-C.

Embraer and Boeing also created a second JV, for the KC-390 program. Embraer retains 51% and Boeing gets 49%.

Embraer retains full control over the remaining defense and business jet units.

Officials put a “best face” on the pending changes at Embraer’s pre-Paris Air Show briefings May 27-29, but they really could not mask the uncertainties and, to some degree, resignation about the future.

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Mitsubishi in negotiations with Bombardier to acquire the CRJ program (Updated)

By Bjorn Fehrm

June 5, 2019, © Leeham News.: The Air Current broke the news earlier today Mitsubishi Heavy Industries (MHI) is negotiating with Bombardier to buy the CRJ program.

BBC has got comments from both companies confirming the discussions, with cautions nothing is settled and it can still result in a no deal. Should it happen it would make a lot of sense for both parties.

UPDATE: Bombardier has issued a statement confirming the discussions, see below.

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Embraer sees need for 10,550 airplanes in 50-150 sectors

May 29, 2019, © Leeham News: Embraer, in what will be its last 20-year market forecast as an independent company, sees a demand for 10,550 jet and turboprop aircraft from 50 to 150 seats through 2038.

The company, founded 50 years ago, growing to become the world’s third largest supplier of airliners, sees its Commercial Aviation unit disappear by the end of this year, barring a hiccup of some kind.

That’s when The Boeing Co. and Embraer expect approval of a joint venture that will be called Boeing Brasil-Commercial (BB-C). Boeing will own 80% of the JV and control governance. Embraer will own 20%. The CEO of the Commercial Aviation unit, John Slattery, will be president of the joint venture, but Boeing will be in charge.

Until then, Embraer is trying to carry on business as usual. And this means it issued its 20-year forecast Monday during its pre-Paris Air Show international media briefing at its headquarters in Sao Jose dos Campos, Brazil.

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