Despite the COVID-19 pandemic and the suspension of production across the world, companies continue making big deals. Unfortunately, some of them do not reach their logical conclusion as companies cancel them for a number of reasons.
Thus, Boeing Co. and Brazil’s Embraer SA, two large plane makers, did not manage to escape such a fate. Boeing has filed arbitration proceedings against Brazilian aircraft manufacturer Embraer following the collapse of a proposed joint venture worth $4.2 billion. Earlier, Embraer sued Boeing for the failed aviation deal.
In return, Boeing Co. filed a lawsuit against Embraer SA in early June 2020. It happened after the American plane maker tore up the deal. Embraer’s management did not expect such an outcome after prolonged collaboration.
The settlement between the two companies was reached in 2018. Boeing was the first to announce its decision to leave the project. The American plane manufacturer also explained the grounds of such a move. According to Boeing representatives, the parties have tried to close the deal for a couple of years. However, they failed to come to a compromise.
Embraer executives filed a complaint against Boeing, accusing the American counterpart of misconduct. The Brazilian airline giant believes that the ex-partner has presented false arguments to avoid obligations to prematurely close the deal and pay Embraer $4.2 billion.
Currently, the Brazilian plane manufacturer is considering other partners for the deal, including companies from China, India, and other countries.
