Boeing announced today that it has terminated its Master Transaction Agreement (MTA) with Embraer, under which the two companies sought to establish a new strategic partnership.
The parties had planned to create a joint venture comprising Embraer’s commercial aviation business and a second joint venture to develop new markets for the Embraer C-390 Millennium medium airlift and air mobility aircraft. For the C-390 program Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly support the Embraer C-390 Millennium military aircraft.
Boeing exercised its rights to terminate the agreement 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.”
