Boeing buys Embraer for $4.8Bn
Found this quite interesting: https://www.ft.com/content/5ba0c060-8046-11e8-bc55-50daf11b720d
What do you guys think? Boeing wants to beef up operations in Latam or trying to offset Airbus' potential growth in short-haul planes after their purchase of Bombardier's C-Series program?
Makes sense if you consider Boeing don't currently have a regional jet below the 737 to compete with the CSeries (which launched relatively unsuccessfully btw somewhat due to the market power of B & A). However I don't know that having this smaller product in the US is as important relative to Europe which has far less major regional hubs. It also isn't clear whether the E195 will cannibalise the 737 max. Not sure why Boeing felt the need to own 80% of the JV, maybe capital constraints at Embraer got it a good price? But even still, they could have developed their own baby jet platform for far less, while keeping all Boeing systems and components the same (creates a limitation for airlines that prefer standardized pilot controls and certification etc.)
I agree and that's also why I think part of the reason was to get a bit more traction in LATAM where Embraer is a favourite for short regional routes.
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