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Embraer is open to new partnerships after failure according to Boeing

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Embraer is open to new partnerships after failure according to Boeing

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Embraer jet (Photo: Robert Alexander / Getty Images)

Embraer expects to sign new strategic partnerships in the future after Boeing suddenly canceled an agreement in April to take control of the company's commercial jet division.

Embraer's chief executive, Francisco Gomes Neto, said that it is too early to discuss these opportunities, as the company is studying a new five-year plan. He added that strategic partnerships can involve products, engineering and production and countries like China, India "and others".

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Reuters reported on Friday that China, Russia and India were probing Embraer and studying possible deals, although any negotiations are preliminary.

Earlier, however, Embraer said it is not currently negotiating with China's state-owned COMAC, Russia's Irkut or India over any possible deal to replace the Boeing transaction.

The company reported on Monday a loss of 433.6 million reais in the first quarter, with a drop in sales due to the pandemic of the new coronavirus, in addition to reflections of the failure of the agreement with Boeing.

The company said its decision to put employees on paid vacation in January to finalize the details of the Boeing deal was responsible for a 23% drop in revenue. In March, Embraer again dismissed workers due to the coronavirus pandemic.

Executives declined to comment on an arbitration lawsuit against Boeing over the cancellation of the deal.

But the company said it hopes to recover from Boeing's tax costs related to the deal that negatively affected its quarterly results.

The company's shares rose 2.8% at 11:30 am, while the Ibovespa showed a positive variation of 0.6%.

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