Aviation

Embraer to Receive $150 Million from Boeing After Scrapping 2020 Merger Deal

Boeing will pay Embraer a settlement of $150 million, closing a lengthy arbitration process that stemmed from the U.S. aerospace giant’s decision to walk away from a $4.2 billion commercial aviation tie-up in 2020.

The deal, which was meant to see boeing new aircraft acquire 80% of Embraer’s commercial aircraft division, fell through at the height of the COVID-19 pandemic. Boeing attributed the collapse to Embraer’s failure to meet the closure conditions, while Embraer argued Boeing’s own financial difficulties caused the breakdown.

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The arbitration dispute has since weighed heavily on Embraer, with the company pausing several key projects, including the spin-off of its commercial aircraft business, which includes popular models like the E175 and the newer E2 jets.

Despite the long-awaited settlement, Embraer’s stock price dropped by 4.5%, signaling that investors were still unsettled by the prolonged fallout of the failed partnership.

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In its official statement, Embraer described the settlement as a “white-knuckle agreement,” suggesting that both companies had to navigate a complex and tense negotiation process to reach this resolution.

Boeing, in a separate statement, confirmed that an agreement had been reached, though it did not disclose the financial details. Despite the settlement, the termination of the deal in 2020 had far-reaching effects for both companies, with Embraer forced to halt various developments and undertake a complex internal restructuring of its commercial aviation division.

Aviation

Airbus Enhances A350 Cabin with 10-Abreast Seating

Airbus has announced a new partnership with Jiatai Aircraft Equipment, a Chinese aircraft seating manufacturer, to supply upgraded economy-class seats for the A350 widebody series.

This collaboration, unveiled at the 2024 Airshow China, focuses on developing a newly designed economy seat tailored for the A350‘s New Production Standard (NPS) cabin.

One of the key features of the NPS cabin is the ability to accommodate 17-inch wide economy seats, compared to the previous 16.5-inch wide seats that airlines were limited to in the A350’s earlier configurations.

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This change is made possible by the expanded space in the NPS cabin, which is 35 inches longer and 4 inches wider than the previous version. This extra space is achieved by slightly moving the cockpit wall forward and shifting the rear pressure bulkhead back by one frame.

The wider cabin allows airlines to add up to 30 extra economy seats without compromising comfort. For airlines opting for a 3-4-3 seating layout, the 17-inch wide seats are an excellent choice for a more comfortable passenger experience. However, some airlines, such as Iberia, may choose to retain a 9-abreast layout with wider seats for added comfort.

The NPS cabin also offers enhanced flexibility for airline operators. One major advantage is the ability to easily switch between a 9-abreast and 10-abreast seating configuration without requiring significant downtime for aircraft reconfiguration. Airlines can use the same seat rails, tracks, and IFE interfaces, making the transition smoother and quicker.

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In addition, the design of the floor attachments and air-conditioning systems has been optimized for 10-abreast seating, meaning airlines can upgrade their cabins without needing to make substantial modifications to the aircraft’s structure.

Though it’s still unclear when Jiatai’s economy-class seats will be officially added to the A350’s Buyer Furnished Equipment (BFE) catalogue, the collaboration marks a significant step toward enhancing the A350’s cabin offerings.

With this partnership, Airbus is providing more seating options for airlines, ensuring that they can meet diverse customer needs while improving overall operational efficiency.