This story starts in 2019. A partnership was established in February 2019, when Boeing agreed to purchase an 80% stake in Embraer’s commercial aircraft division. Embraer’s shareholders approved the deal, but in April Boeing pulled out of the deal. Who did what and why isn’t the point now. The key issue now is that today Embraer announced it has successfully completed the reintegration of its commercial aviation business’ main information technology systems and processes.
The process was started in May 2020 after the collapse of the Boeing deal. As Embraer states in its PR: “The reorganization resulting from this process began in May 2020 and since then has been one of Embraer’s main focuses, as part of the execution of the strategic plan and implementation of initiatives to make good use of skills and recover synergies. The reintegration ensures operational benefits and eliminates fiscal inefficiencies that an integrated, less complex, and more agile management can offer. With the completion and restoration of normal service in the company, commercial aviation is again directly linked to Embraer’s structure.”
Actually, the deal between Boeing and Embraer was first mentioned by the WSJ in 2017. The MOU came out in 2018. The deal was supposed to close in June 2020. The deal collapsed in April 20202 and in May 20202 Embraer started to stitch back its commercial aviation division.
After the deal’s collapse, we heard about the disruption this caused. Not just the legal ramifications, but the impact of the splitting off of the Commercial Aircraft from the mother ship. There was a big impact on people and resources in Brazil. It has taken Embraer nearly two years to get back to where it was in 2020. The time required to repair and reintegrate supports the level of disruption we heard about.
Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.