The two-year deal was canceled on Saturday evening after a cut-off date to close the gap between Embraer’s commercial aviation division and Boeing, which has come and gone without progress. Embraer, however, said the difficulties of the Boeing 737 MAX, as well as its coronavirus problems, led it to “wrongly” terminate the unfortunate deal.“Boeing worked diligently for more than two years to finalize its transaction with Embraer,” said Marc Allen of Boeing, who led the partnership and operations of the Embraer group. “Over the past few months, we have had fruitful but ultimately fruitless negotiations on the unsatisfactory conditions of the MTA. “
“We wanted to resolve them all by the original termination date, but that didn’t happen,” said Allen. “It is deeply disappointing. But we have reached a point where continuing negotiations under the MTA will not resolve the outstanding issues. “
Boeing stocks fell 2.3% early Monday to change hands to $ 126.00, while Embraer’s U.S.-listed stocks fell 10.2% to $ 5.22 each
The decision to sever ties with Embraer suggests Boeing’s path to what CEO David Calhoun has called the “new reality” in the global aerospace industry, where some 16,700 commercial aircraft – more than two-thirds of the world’s fleet – remain anchored in the midst of coronaviruses. lead travel restrictions, continues rapidly.
Airbus SE, Boeing’s main European rival, told staff Saturday that the world’s largest planner “was bleeding money at unprecedented speed” and warned that its “survival was in question” if it didn’t not act with layoffs and downturns in production.
Bloomberg announced last week that Boeing was ready to cut production of its 787 Dreamliner, while unveiling more in-depth layoffs and staff buyouts, ahead of its third quarter earnings report on Wednesday. FactSet forecasts suggest it will post a loss of $ 1.35 per share on sales of $ 17.3 billion.
Earlier this month, however, Boeing began the process of returning 27,000 employees to its main assembly site in Washington, as it pursues its goal of returning the 737 MAX jet to mid-2020. ground.
The decision to reopen the Seattle plant follows an agreement between the US Department of the Treasury and the country’s largest airlines to obtain $ 25 billion in CARES assistance, a decision that CEO David Calhoun has described as “not on the long road to recovery after the Covid-19 crisis.” ”
“Our industry has taken a step along the long road to ending the COVID-19 crisis this week,” said Calhoun. “The US government and 10 airlines have agreed on a package of $ 25 billion in support that will help our customers iron until passengers can start traveling again. “
Boeing said last month that it needed a “minimum” of $ 60 billion in government assistance to support the 2.5 million jobs in the US aerospace industry. The planner did not indicate how much of the aid he would need directly, but noted that it depends on at least 17,000 suppliers across the country and holds the position of the largest US exporter.