Embraer Files for Arbitration over Failed Boeing Tie-up

 - April 27, 2020, 10:53 AM
An Embraer E195-E2 in one of the company's "Profit Hunter" liveries undergoes preparation for display at the 2019 Paris Airshow. (Photo: Mark Wagner)

Embraer on Monday said it has filed for arbitration against Boeing in connection with the U.S. manufacturer over the weekend of plans to purchase 80 percent of the Brazilian airframer's commercial airplane business for $4.2 billion.

Embraer declined to elaborate on the brief statement it released on the matter.

On Saturday Embraer issued a firm rebuttal of Boeing’s assertion that it exited the deal due to “unsatisfied” conditions of the master transaction agreement (MTA), which expired on April 24. In a statement issued just hours after Boeing announced it had terminated the MTA, Embraer said it “believes strongly” that Boeing manufactured false claims as a pretext to avoid closing the transaction.

Embraer added it would pursue “all remedies” against Boeing for damages it claims to have incurred as a result of Boeing’s actions.