Boeing explores Embraer tie-up to match Airbus’s small-jet foray

Boeing is considering a “potential combination” with Embraer, the companies said, setting the stage for a blockbuster deal that would expand the US aerospace giant’s reach into the highly competitive market for smaller jets. The options include a joint venture that would enable the companies to cross-sell their complementary line-ups of commercial jets and negotiate better deals with suppliers, said a person familiar with the matter. Such a partnership would stop short of a politically risky takeover by Boeing, said the person. Boeing’s potential Embraer deal raises the prospect of a duopoly with Airbus that would extend into the market for smaller planes, where manufacturers in Canada, Russia, Japan and China are emerging as competitive threats. <br/>