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SAO PAULO, BRAZIL - The Brazilian commercial aircraft manufacturer Embraer said that it is open new partnerships to new after Boeing scrapped a $4.2 billion deal for the establishment of a  joint venture company between two manufacturers.

But Embraer CEO Francisco Gomes Neto said any new agreement would be smaller in scope than the failed one with Boeing.

“We are not looking for a partnership of the size that the company had with Boeing,” he said. “We think that it would be faster and more efficient to have partnerships by the project,”

Neto said.
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To do so, Gomes Neto will undo the costly separation process that readied Embraer’s profitable commercial jet division for Boeing’s takeover and bring all of its employees back under the same corporate roof.

The two companies are now engaged in competing arbitration proceedings, having each filed claims against the other separately over whether the necessary conditions for the Embraer-Boeing deal were met. When Boeing canceled the planned deal in April just as the coronavirus ravaged the travel industry, Embraer was left with no plan B.

Gomes Neto acknowledged Embraer is only now drafting a five-year business plan for the commercial jets division which Boeing would have run. Embraer drew up similar plans last year for its defense and executive jet units which were going to remain independent from Boeing.
The commercial unit makes mid-range jets of up to 150 passengers, which compete directly with the Airbus A220. That plane was initially developed by a smaller company, Canada’s Bombardier, whose jet project was acquired by the European planemaker.

Gomes Neto, who took over after the Boeing deal was initially signed, is now remaking Embraer as a company focused on finding smaller, more targeted partnerships.

A new turboprop aircraft that Embraer wishes to develop, but no longer has the cash to finance could potentially spawn one deal, he said.

“During these first few years coming out of the crisis we are going to have to prioritize many investments,” Gomes Neto said. “We have reduced all investments, some of them are close to zero.”

Two few weeks ago, Reuters news agency reported that China, India, and Russia were evaluating potential partnerships with Embraer.

“We don’t have any negotiations going on at the moment, but without a doubt, they are potential partners,” Gomes Neto said of those countries. “We are evaluating those markets at this moment ... but it’s still in an embryonic stage.”

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