Single-aisle concerns drive EU to probe Boeing-Embraer

Concerns over the competition impact on the single-aisle aircraft market have spurred the EC to open an in-depth investigation into the planned tie-up between Boeing and Embraer. The regulator says it will particularly examine the situation in the 100- to 150-seat sector – in which the two airframers have "to a certain extent" aircraft types which address the same market. Boeing offers the 737 family in the single-aisle category while Embraer has the E-Jets, with both airframers having re-engined versions. The Commission says that while the US and Brazilian manufacturers both compete with Airbus – which has the A320 family and A220 in this sector – they "also seem to engage in head-to-head competitions". It also suggests Embraer has an influence over the broader single-aisle market, above 150 seats. "Despite Embraer's comparatively small market share it…seems to exert some price constraint on the market leaders," says the Commission. "The transaction may therefore eliminate a small but important competitive force in the concentrated overall single-aisle market," it adds.<br/>