Boeing today announced the termination of its Master Transaction Agreement (MTA) with Embraer through which the two leading aviation companies had sought to establish a strategic partnership.
The plan initially was to pursue a joint venture, which would see the two manufacturers working together to develop 100- to 150-seat regional aircraft, and grow new markets for Embraer's C-390 Millennium medium-airlift and air-mobility aircraft.
Under the conditions of the MTA, the designated termination date (subject to extension by either part, should certain conditions be met) was set for April 24, 2020. As such, Boeing terminated the contract after Embraer failed to satisfy the requisite conditions.
"Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn't happen," said Marc Allen, president of Embraer Partnership & Group Operations. "It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues."
The planned partnership had already been approved by all the necessary regulatory authorities, save the European Commission. The existing Master Teaming Agreement between the two companies, originally signed in 2012 and expanded in 2016, aimed at jointly marketing and supporting Embraer's C-390 Millennium military aircraft, will remain in effect.
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