Embraer S.A. (BM&F Bovespa: EMBR3, NYSE: ERJ) and Boeing (NYSE: BA) today announced a cooperation agreement to work together to benefit their customers, their companies and the global aviation industry. The agreement establishes an important relationship between two of the world's largest aerospace companies to cooperate in ways that enhance operational efficiency, safety and productivity, improve customer satisfaction and create value for both companies and their customers.
Frederico Curado, President and CEO of Embraer S.A., and Jim Albaugh, President and CEO of Boeing Commercial Airplanes, signed the agreement during the visit of Brazil's President to the United States and following the annual meeting of the U.S.-Brazil CEO Forum, a public-private partnership between the United States and Brazilian Governments which brings together chief executive officers from both countries. Curado and Albaugh are co-chairs of the CEO Forum's aviation subcommittee.
Boeing and Embraer have agreed to pursue several areas of cooperation, including commercial aircraft features that enhance safety and efficiency, research and technology and sustainable aviation biofuels. They will also look for other areas to work together to bring mutual benefit and value to customers.
"This significant agreement between two proven aerospace leaders provides real opportunities to reduce customers' operational costs and enhance fleet efficiency," said Albaugh. "We look forward to working with Embraer to grow our industry and build a productive relationship that will benefit our companies and our countries."
"Embraer has a clear commitment towards innovation lato sensu as well as aviation safety and efficiency," said Curado. "I am certain that the collaboration with Boeing in some leading-edge matters will be beneficial for the industry and strengthen the ties between Brazil and the United States."
The announcement by Embraer and Boeing was made on the same day as the signing by the Brazilian and United States Governments of a Memorandum of Understanding on the Aviation Partnership, to expand and deepen cooperation between the two countries on civil aviation, by facilitating the liaison between government agencies and increase private sector cooperation and awareness, creating economic partnerships and promoting investments.
Boeing and Embraer have already engaged in other cooperative agreements. In July 2011 they announced plans to jointly fund an analysis of opportunities to produce sustainable aviation jet fuel from sugarcane. In March 2012, Boeing, Embraer and Airbus announced a memorandum of understanding to work together on the development of drop-in, affordable aviation biofuels.
Embraer has had a corporate presence in the U.S. for over 3 decades and last year started manufacturing activities at its facility in Melbourne, Florida, where it is currently assembling executive jets. More recently, Embraer announced the creation of the Embraer Engineering and Technology Center USA to conduct research and development activities for both product and technology development across Embraer's business lines.
Boeing has had a strong and enduring partnership with Brazil for 80 years, since delivery of 14 F4B-4 fighters to the Brazilian Government in 1932 and as a commercial aircraft provider to Brazilian airlines. In October 2011, Boeing opened its Brazil office in Sao Paulo, and said in December that it will partner with the Brazil-U.S. Fulbright Commission to fund "Science Without Borders" fellowships for 14 Brazilian aerospace and aeronautical engineering students. Last week, the company announced that it will open Boeing Research & Technology-Brazil to work with leading Brazilian researchers and scientists to develop aerospace technologies.
The U.S.-Brazil CEO Forum comes together to provide joint recommendations to the two Governments on ways to strengthen the U.S.-Brazil economic relationship. This is the Forum's seventh meeting.
Source: The Boeing Company (NYSE: BA)
Date: Apr 10, 2012