FARNBOROUGH — Boeing CEO, Dennis Mullenburg, and Embraer CEO, Paulo Cesar, discussed Boeing and Embraer’s commercial aviation partnership on the opening day of the Farnborough Airshow 2018.
At the Boeing chalet, both executives broadly discussed the reasoning for the multibillion-dollar partnership that will bring the Embraer E-Jet family into the Boeing product portfolio.
After months of discussions, it was announced on July 5th that Boeing and Embraer had finally struck a deal that saw Boeing take an 80% stake in Embraer’s commercial airplane and services division for $4.75 billion.
Mullenburg, Boeing’s CEO, stated at today’s press conference:
“It’s an exciting time for Boeing and Embraer. We have worked together for a long time.”
“This proposed partnership is the natural evolution of a strategic partnership that’s been going on for decades.”
“It is one that we view through the eyes of what brings values to our customers,” he concluded.
— Dennis A. Muilenburg (@BoeingCEO) July 16, 2018
The partnership, which was done with haste, is a direct response to Airbus taking over the Bombardier CSeries program.
Boeing’s purchase of the E-Jet program will allow Boeing and Embraer to better compete against Airbus.
Cesar, Embraer’s CEO, on the other side, established:
“We believe that this transaction here is very strategic.”
“It’s a partnership that will develop new products that will provide Embraer with access to more markets,” Cesar explained.
“Boeing being a global player, they have the opportunity to complement our products and give more access to clients around the world.”
“It’s going to be a growth opportunity for Embraer. We have certain capabilities that each can use. It’s a win-win transaction. It’s more strategic than anything else,” he determined.
He says the so-called duopoly is not real. “This is a case where through combination we’ll create more value for our customers. Not less choices.”
— Enrique Perrella (@Enrique77W) July 16, 2018
Under the Boeing umbrella, Embraer will instantly become more competitive on the global marketplace.
Just like Airbus and the A220 (CSeries), Embraer will utilize Boeing’s vast marketing and sales team to increase sales and drive the E-Jet E2 deeper into the 21st century.
At the press conference, Mullenburg touted the two companies heritages and culture as keys to a successful partnership:
“Our investment underscores our commitment to Brazil.”
“We have similar cultures, connection, and commitment to excellence.”
“We work so well together as companies. Two incredible companies with proud heritage.”
Mullenburg added weight to the partnership by stating: “Boeing has had many defining points in our history. This is another one of those moments.”
While few new details were revealed at today’s press conference, the two executives did shed light on what the full potential of what the Boeing and Embraer partnership may look like.
Airways is LIVE at the Farnborough Airshow 2018. Follow our rolling coverage on Twitter at @AIRWAYSLIVE and @AIRWAYSMAGAZINE.