The Brazilian aircraft manufacturer Embraer may still enter into a close   
   partnership with the much larger industry partner Boeing. A federal court in   
   Brazil has overruled a previous court decision on blocking the proposed deal,   
   reports Reuters.   
       
   A government attorney had asked the court to declare the court order invalid   
   because this would be contrary to the constitutional right to freedom of   
   enterprise. In this way, the government would interfere in negotiations   
   between two private companies.   
       
   Left parties and trade unions in Brazil were fiercely against the deal between   
   Embraer and Boeing. According to the deal announced in June, Boeing will   
   receive a controlling share of Embraer's commercial aircraft for $ 4.75   
   billion.   
       
   The Brazilian-American joint venture must counterbalance the deal that Airbus   
   previously concluded with Bombardier. The European aircraft manufacturer   
   received a majority share of the C Series aircraft program.   
       
   Airbus has therefore been able to strengthen its position on the aircraft   
   market by 100 to 150 seats. By taking an interest in Embraer, Boeing wants to   
   take a slice of the bottom of the market in which it is active, particularly   
   with the E2 series.   
       
   The final decision on the continuation of the deal is in the hands of the   
   shareholders and the government. The current Brazilian government has moved   
   the decision on the deal to that of the new president Jair Bolsonaro, who will   
   take office on January 1st. He would basically be in fqvor the deal. Boeing   
   and Embraer have previously said that they expect authorization from   
   shareholders and authorities by the end of 2019.   
      
   --- D'Bridge 3.99 SR40   
    * Origin: AVIATION ECHO HQ (2:292/854)