Aviation

Boeing and Embraer Welcome Brazilian Approval

CHICAGO and SÃO PAULO, Jan. 27, 2020/PRNewswire/ — Boeing [NYSE: BA] and Embraer [B3: EMBR3, NYSE: ERJ] welcome the unconditional approval of their strategic partnership by the Administrative Council for Economic Defense (CADE)’s General-Superintendence (SG) in Brazil. The decision will become final within the next 15 days unless a review is requested by CADE Commissioners. The partnership has now received unconditional clearance from every regulatory jurisdiction with the exception of the European Commission, which continues to assess the deal.

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“This latest clearance is yet another endorsement of our partnership, which will bring greater competition to the regional jet marketplace, better value for our customers and opportunities for our employees,” said Marc Allen, Boeing’s president of Embraer Partnership & Group Operations.

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“Brazil’s approval of the deal is a clear demonstration of the pro-competitive nature of our partnership,” said Francisco Gomes Neto, president and CEO of Embraer. “It will not only benefit our customers, but also allow the growth of Embraer and the Brazilian aeronautical industry as a whole.”

Unconditional clearance has now been granted in Brazil, United States, China, Japan, South Africa, Montenegro, Colombia, and Kenya.

Boeing and Embraer have been in discussion with the European Commission since late 2018, and continue to engage with the Commission as it proceeds through its assessment of the transaction.

“We have been productively engaged with the Commission to demonstrate the pro-competitive nature of our planned partnership, and we look forward to a positive outcome,” Boeing’s Allen said. “Given the positive endorsement we’ve seen from customers across Europe and the unconditional clearance we’ve received from every other regulator who has considered the transaction, we look forward to securing final approval for the transaction as soon as possible.”

The planned strategic partnership between Embraer and Boeing comprises two joint ventures: one joint venture made up of the commercial aircraft and services operations of Embraer (Boeing Brasil – Commercial) in which Boeing will own 80 percent and Embraer will hold 20 percent; and another joint venture to promote and develop markets for the multi-mission medium airlift C-390 Millennium (Boeing Embraer – Defense) in which Embraer will own a 51 percent stake and Boeing will own the remaining 49 percent.

Aviation

DOT Penalizes Lufthansa $4 Million for Stopping Jewish Passengers From Boarding

The U.S. Department of Transportation (DOT) has imposed a $4 million penalty on Lufthansa for discriminating against Jewish passengers traveling from New York City to Budapest via Frankfurt in May 2022. The incident marked the largest civil rights fine ever levied by the DOT against an airline.

The case stems from an incident where Lufthansa denied 128 Jewish passengers — most of whom were wearing traditional Orthodox Jewish attire — from boarding their connecting flight in Germany.

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The airline’s actions were based on the alleged misconduct of a few individuals during the first leg of the journey from John F. Kennedy Airport (JFK) to Frankfurt (FRA). However, many of those passengers did not know each other or travel as a group. DOT investigators found that Lufthansa treated them as a single entity, barring them from their connecting flight to Budapest (BUD) for the actions of a few.

Transportation Secretary Pete Buttigieg emphasized the department’s commitment to protecting passengers’ rights. “No one should face discrimination when they travel, and today’s action sends a clear message to the airline industry that we are prepared to investigate and take action whenever passengers’ civil rights are violated,” he said. Buttigieg added that DOT’s increased enforcement efforts aim to ensure airlines treat all passengers with fairness and dignity.

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The investigation began after DOT received over 40 complaints from Jewish passengers affected by the incident. Despite some passengers failing to follow crew instructions on the first flight, lufthansa business lounge newark did not specifically identify any noncompliant individuals.

Instead, the airline placed a blanket hold on the tickets of over 100 passengers, preventing them from continuing their journey. lufthansa airways acknowledged that this approach could lead to excluding compliant passengers but deemed it impractical to address each case individually.