Over the weekend, Boeing terminated its agreement with Embraer to acquire the E2 series of commercial jets. Embraer has protested this termination, but this transaction appears now to be like Humpty Dumpty and is unlikely to be put together again. The proposed deal had several potential advantages for each side. Embraer would have obtained the marketing clout of Boeing and the opportunity for the E2 family to be considered in multiple-aircraft deals with Boeing. Boeing would have obtained the excellence in engineering at Embraer, who has introduced 14 new models in 14 years, with a track record for being on-time and on-budget. But in the end, the impact on the aviation market from the coronavirus resulted in market valuation that made the original proposed transaction mispriced.


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