Image Courtesy: Boeing
Boeing has terminated a Master Transaction Agreement (MTA) with Embraer, it was announced today. The MTA was meant to create a new level of strategic partnership between the two companies. Under this MTA, the two companies had planned a joint venture with Embraer’s commercial aviation sector, plus a second venture to develop new markets for the C-390 Millennium medium airlift and air mobility plane.
April 24th, 2020 was the initial termination date. Boeing exercised its rights to terminate the MTA after Embraer did not satisfy the necessary 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.”
Both companies will maintain the existing MTA signed in 2012 and expanded in 2016 to jointly market and support the C-390 Millennium military aircraft.
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