Betting Big On The ‘Profit Hunter'

Brazil’s Embraer is all set to become Boeing Brazil. And, when that does happen, Boeing could well brush away the MAX worries and look at better times.

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They call the E195 E2 the ‘Profit Hunter’ at Embraer and its appearance on the world stage has come at a most propitious moment for Boeing. Buffeted by the MAX problems, Boeing’s proposed acquisition of Embraer’s commercial aircraft business (though the government of Brazil approved the merger in January this year and the US Federal Trade Commission cleared the joint venture, it has been held up by European Union anti-trust concerns – the final decision of the Boeing-Embraer joint venture has been set for February 20, 2020) could be its way out to establish itself as the world’s leading aviation player.

With reports appearing that Embraer’s commercial aircraft division will be rebranded as Boeing Brazil, the merger – in all probability – will go through. This, despite the latest lawsuit, filed by Brazil’s Democratic Labor Party (PDT) seeking to block the sale of 80 percent of Embraer SA’s commercial jet division to Boeing Co for $4.2 bn.