Boeing terminates MTA with Embraer, triggering protest
Boeing announced on 25 April that it has terminated its Master Transaction Agreement (MTA) strategic partnership with Embraer, the day after it was due to expire unless either party agreed to an extension.
Embraer reacted by accusing Boeing on 27 April of wrongfully terminating the agreement.
Marc Allen, president of Embraer Partnership and Group Operations at Boeing said: ‘Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it did not happen.
Allen continued by saying that the outcome was ‘deeply disappointing.’
The MTA was signed in 2012 and expanded in 2016, with Boeing and Embraer agreeing to support the development and sale of the C-390 Millennium medium airlift and air mobility military aircraft (pictured).
Embraer released a statement saying that 'Boeing has wrongfully terminated the MTA, [and] that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction'.
Embraer believes it is owed $4.2 billion by Boeing, and it 'will pursue all remedies against Boeing for the damages incurred '.
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