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.

Two Russian Schoolboys Arrested for Destroying Mi-8T Helicopter

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.

A Costly Mistake: Passenger Pays for Fuel After Disruptive Flight

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

Did you know ? Once Boeing 747 carried 1088 passenger in 1991

In 1991, during Operation Solomon, Israel aimed to airlift 14,000 people from Ethiopia within 36 hours. The effort was intense, with a strong focus on evacuating as many individuals as possible from the country.

At the forefront of this operation was the Boeing 747, known as the “Queen of the Skies,” which transported nearly 1,088 passengers.

Due to the urgent circumstances, all passengers were seated on the aircraft floor, despite the Boeing’s typical maximum capacity being around 660 passengers as per manufacturer specifications.

The aircraft was granted special approval to take off under these exceptional conditions.

Amid political tensions and military reforms in Ethiopia, the Ethiopian government requested the Jewish community to leave the country, providing them with a limited window for evacuation. In response, the community organized an airlift to facilitate their safe departure.

A fleet of 35 Israeli aircraft, including C-130s from the Israeli Air Force and El Al Boeing 747s, was deployed for the mission. These aircraft flew non-stop, successfully transporting most of the Ethiopian Jewish community to Israel in one of the largest airlift operations in history.