„We believe Boeing is in a systematic pattern of delays and repeated violations of the MTA because it is unwilling to close the transaction in light of its own financial situation and 737 MAX and other business and reputational issues,” Embraer said Saturday. „Embraer believes that it fully meets its obligations under the MTA and has met all the conditions that must be met by April 24, 2020. Embraer will take all action against Boing over damages to Embraer as a result of Boeing`s unlawful termination and violation of the MTA. Marc Allen, President of Embraer Partnership – Group Operations, said: „For more than two years, Boeing has worked hard to complete its transaction with Embraer. In recent months, we have had productive but ultimately unsuccessful negotiations on unsatisfied MTA conditions. „Boeing worked hard for more than two years to complete its transaction with Embraer. In recent months, we have had productive but ultimately unsuccessful negotiations on unsatisfied MTA conditions. We wanted to resolve them all before the initial termination date, but that wasn`t done,” said Marc Allen, president of Embraer Partnership-Group Operations. It`s deeply disappointing. But we have reached a point where the continuation of the MTA negotiations will not resolve the outstanding issues. Ahead of the agreement, Boeing and Embraer had already signed an agreement to support C-390 Millennium military aircraft. This agreement was last extended in 2016. Boeing has hinted that this link will continue despite the expiry of this agreement. The initial date for the MTA was set for April 24, 2020 if the requirements were not met.
Subsequently, Boeing decided to terminate the contract because Embraer did not meet the above conditions. The two manufacturers are expected to enter into a joint venture partnership for the development of commercial aircraft. Boeing would thus participate in the smaller market of 90 to 120 seats currently dominated by the Airbus A220. Airbus had bought the A220 from Bombardier, one of Embraer`s biggest competitors. The agreement could have resulted in a brand new turboprop. After Boeing announced the termination of the Master Transaction Agreement (MTA) due to unsuccessful negotiations to resolve certain conditions with the agreement, Embraer followed up Saturday with its own statement that Boeing had wrongly terminated its agreement and that it did not want to pay $4.2 billion. The two companies signed a non-binding agreement for the creation of the joint venture for the first time nearly two years ago.