Master Transaction Agreement between Boeing and Embraer terminated:
1 May 2020: The Master Transaction Agreement which was sought to establish a new level of strategic partnership between Boeing and Embraer has been terminated. The initial termination date was 24th April 2020 under the MTA and it was subject to extension by either party if certain conditions were met. 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 C-390 Millennium medium airlift and air mobility aircraft.
Boeing exercised its rights to terminate 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."
Apart from European Commission, the partnership had received unconditional approval from all necessary regulatory authorities.
The Master Teaming Agreement originally signed in 2012 and expanded in 2016 continues to exist to jointly market and support the C-390 Millennium military aircraft.
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