The head of Embraer's commercial aircraft unit defended the benefits of a $4.2 billion tie-up abandoned by Boeing Co last week, but said the Brazilian aerospace group was focusing on its future as a re-united company. Commercial Aviation Chief Executive John Slattery said Embraer had incurred pain and costs in separating jetliners from defence and business-jet activities in preparation for the merger, including a loss of deliveries in January. Speaking in a webinar hosted by Aviation Week, Slattery said he was convinced the commercial aerospace partnership with Boeing would have provided "extraordinary benefits" to airline customers who had expressed disappointment at its collapse.
Moody's Investors Service ("Moody's") assigned Baa2 ratings to The Boeing Company's (Boeing) new senior unsecured notes announced earlier today. The company's current Baa2 senior unsecured rating and negative outlook are unaffected by the planned issuance of these notes. Today's issuance constitutes an important source of cash for Boeing as it continues to be strained by both the COVID-19 crisis and the ongoing grounding of the 737 MAX.
Bill Blain, strategist at London-based Shard Capital, questioned the future of the financial markets in light of the pandemic.
Rating Action: Moody's downgrades Embraer ratings to Ba2; outlook negative. Global Credit Research- 29 Apr 2020. New York, April 29, 2020-- Moody's Investors Service downgraded its ratings for Embraer ...
Brazilian planemaker Embraer may obtain credit lines between $1 billion and $1.5 billion from the country's development bank, BNDES, and other lenders after a deal to sell its commercial aircraft division to Boeing fell through, two sources close to the matter said on Friday. Embraer may also be included in a relief program for national airlines affected by the COVID-19 pandemic, they said. Last week, Boeing announced the cancellation of a 2017 agreement to buy control of Embraer's commercial jets division for $4.2 billion, raising doubts about the Brazilian company's future and motivating it to commence arbitration proceedings against the U.S. company.
The head of the commercial aircraft unit of Embraer defended the benefits of a $4.2-billion tie-up abandoned by Boeing Co but said the Brazilian aerospace group was focusing on its future as a re-united company. CEO John Slattery said Embraer had incurred "pain" and costs in separating jetliners from defence and business-jet activities in preparation for the merger, including a loss of deliveries in January, but declined to comment on arbitration now under way. Speaking in a webinar hosted by Aviation Week, Slattery said he was convinced that the commercial aerospace partnership with Boeing would have provided "extraordinary benefits" to airline customers who had expressed disappointment at its collapse.
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Boeing reported a better-than-expected loss in Q1 but production forecasts for the 737 Max, 787 and 777 were trimmed further.
Boeing Co's recently aborted $4.2 billion agreement to buy the commercial jet-making operations of Brazil's Embraer specifically forbade either party from calling it off because of a pandemic or a global economic recession, Reuters has found. As the aviation industry grapples with its worst crisis in generations due to the coronavirus pandemic, analysts now say the deal's contract backed Boeing into a corner when financial conditions worsened globally, pushing it to find a different exit route on the deal. Boeing says it backed out because Embraer failed to meet unnamed conditions.
Embraer (NYSE: ERJ; B3: BOVESPA: EMBR3) delivered a total of 14 jets in the first quarter of 2020, of which five were commercial aircraft and nine were executive jets (five light and four large). As of March 31st, the firm order backlog totaled USD 15.9 billion. See details below:
Mitsubishi Heavy Industries said it was halving the annual development budget for Japan's first regional jet in half a century, the M90 SpaceJet, as the coronavirus pandemic squeezes profits. "We have to reconsider how we move forward," Mitsubishi Heavy Chief Executive Officer Seiji Izumisawa said during a press briefing to announce the company's latest results. The SpaceJet budget this business year will be around half of the 141 billion yen it spent in the year that ended March 31, he said.
Planemaker Embraer said Tuesday that its commercial jet deliveries slumped by more than half during the first three months of 2020 compared to a year ago, blaming the drop on preparations for its failed deal with Boeing Co. Embraer did not mention coronavirus as a factor. Embraer had hoped Boeing's planned takeover of its commercial plane division would bring much-needed marketing power to its midsize E2 jets, which have been praised for their fuel efficiency but have lagged in sales.
At least two Brazilian airlines and planemaker Embraer SA have hired investment banks to help with talks with state development bank BNDES for government support, sources with knowledge of the matter said. Embraer has hired Itau BBA, the investment banking unit of Itau Unibanco Holding SA, two sources said. Embraer is seeking credit lines between $1 billion and $1.5 billion after a deal with Boeing Co fell through.
Brazil's infrastructure minister said on Monday the country still wants to privatize 43 airports through 2022, even as the COVID-19 pandemic ravages the air transportation industry. Minister Tarcisio Freitas also said the government's plan to revive economic activity after the pandemic forecasts 30 billion reais ($5.5 billion) in public investment in infrastructure. The licenses to operate 22 airports were initially expected to be auctioned this year, but private investors asked for a delay in the process to try to estimate future demand, he said.
Boeing Co's recently aborted $4.2 billion agreement to buy the commercial jet-making operations of Brazil's Embraer specifically forbade either party from calling it off because of a pandemic or a global economic recession, Reuters has found. As the aviation industry grapples with its worst crisis in generations due to the coronavirus pandemic, analysts now say the deal's contract backed Boeing into a corner when financial conditions worsened globally, pushing it to find a different exit route on the deal. Boeing says it backed out because Embraer failed to meet unnamed conditions.
As passenger traffic dries up in the Age of Coronavirus, and airlines ground their air fleets, this also isn't great news for manufacturers of airplanes. Perhaps this is the reason that even just a little good news went a long way for Brazilian plane maker Embraer (NYSE: ERJ) this morning, which saw its stock price shoot up nearly 13% (and it's still up a good 7.5% as of 12:15 p.m. EDT) on news not even of a new airplane sale, but simply the conversion of an existing order for a couple of airplanes into an order for some slightly bigger airplanes (and hopes for the sale of some more). In a press release this morning, Embraer announced that African airline Congo Airways has converted a firm order for two of its E175 passenger jets into an order for two larger E190-E2 jets instead, with the option to buy two more.
Congo Airways have converted the firm order made in December 2019 for two E175 aircraft, with purchase rights for two more, into a firm order for two E190-E2 jets, with purchase rights for a further two. The new deal has a total value of USD 256 million at current list prices with all purchase rights exercised, and will be included in Embraer's second quarter backlog.
The head of Embraer's
Aerospace stocks were down again, adding to steep year to date losses. Now investors need to decide where the bottom in commercial air travel is and what a travel rebound will look like.
SpaceJet regional aircraft maker, Mitsubishi Aircraft, said it is closing overseas operations that employ hundreds of people and may cut staff at home after its parent company slashed the development budget for Japan's first commercial aircraft in a century. The move, which comes as the coronavirus pandemic wreaks havoc on the aviation industry, casts doubt over the future of Japan's commercial aircraft ambitions and will at the very least delay certification of Mitsubishi's first plane, the M90. Mitsubishi Aircraft has already shelved plans for a shorter variant, the M100, seen as key to winning orders in the lucrative U.S. market.