Embraer has been accused Boeing of “manufacturing false claims” following the announcement of the termination of a strategic partnership between the two airframers.

The parties had a Master Transaction Agreement (MTA) in place to create a joint venture comprising Embraer’s commercial aviation business and a second joint venture to develop new markets for the C-390 Millennium medium airlift and air mobility aircraft.

But Boeing terminated the agreement on April 24, 2020, subject to extension by either party if certain conditions were met. In a statement, Boeing said it had exercised its rights to terminate after Embraer did not satisfy the necessary conditions.

“Unsuccessful negotiations about unsatisfied MTA conditions”

Marc Allen, president of Boeing’s Embraer Partnership & Group Operations, said: “Boeing has worked diligently over more than two years to finalise its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn’t happen.”

“It is deeply disappointing,” he added. “But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues.”

In a statement on its website, Embraer confirmed it was in receipt of the termination of the MTA and claimed it had complied fully with its obligations and had satisfied all conditions required to be accomplished by April 24, 2020.

Boeing’s “false claims” were to avoid financial commitment – Embraer

The statement added that Embaer “believes strongly that Boeing has wrongfully terminated the MTA, that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the US$4.2 billion purchase price.”

The statement added: “We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems.”

Embraer has stated that it will “pursue all remedies against Boeing for the damages incurred by Embraer as a result of Boeing’s wrongful termination and violation of the MTA.”

The planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.

Boeing’s statement added that the two companies would maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.