Boeing has announced a major $4.75 billion venture with Brazilian plane maker Embraer as it takes the fight to Airbus for the regional jet market.
Under the terms of the JV Boeing will have a 80% share of the partnership of Embraer’s commercial jet business with the remaining 20% held by the Brazilian firm.
The deal gives Boeing an expanded presence in the 100-seater plane market.
It is a timely development as Airbus is soon to take over production of Bombardier’s C Series jet production program.
"For Embraer, it means that we will have better access to markets with Boeing," said Embraer’s chief executive officer Paulo Cesar de Souza e Silva.
"Boeing also values a lot the way that Embraer designs, develops and engineers aircraft."
The two companies had been in talks over a long period, which seems to have took extra urgency since the Airbus-Bombardier partnership was revealed.
Embraer’s military and private jet businesses are not part of the JV and will continue to operate separately.
The new JV will be overseen by a Brazil-based CEO and management with Boeing CEO Dennis Muilenburg having overall executive control.
