Embraer ties new turboprop program to Boeing deal – WSJ

Embraer (NYSE:ERJ) would scrap plans to build the first all-new turboprop aircraft in 30 years if its proposed joint venture with Boeing (NYSE:BA) fails to win secure regulatory approval, Embraer Commercial Chief Executive John Slattery tells WSJ.

Regional airlines, which have struggled relying predominantly on low population density routes, are hoping to help their fleets with the turboprop, since they are considered more efficient than jetliners over short distances.

The market is dominated by France-based ATR, which is owned by Airbus (OTCPK:EADSY) and Italy’s Leonardo (OTCPK:FINMF); Slattery believes a new Embraer aircraft would offer more efficient technology to airlines and perhaps spark ATR to respond with a new model of its own.

Embraer’s tie-up with Boeing still needs signoffs from European and Brazilian competition officials; Slattery says Brazil could approve the deal this month, while the European Commission’s antitrust authority has pushed back its decision to April 30.


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