Embraer open to new partnerships after Boeing deal collapses

Embraer said Monday that it expects to sign new strategic partnerships in the future, after Boeing abruptly canceled a deal in April to take over the company’s commercial jet division. Embraer CE Francisco Gomes Neto said it was still early to discuss such opportunities as the company is studying a new five-year plan. He added that partnerships could involve products, engineering and production. Embraer said ahead of a Monday earnings call that it was not currently negotiating with China’s state-owned COMAC, Russia’s Irkut or India on any potential deal to replace the one with Boeing, adding that it regularly evaluates potential partnerships. The company reported a $292m Q1 loss Monday due to weak demand amid the coronavirus pandemic and the impact of the failed deal with Boeing. Embraer also said it was seeking new liquidity. Reuters reported that Brazilian development bank BNDES is helping coordinate a $600mn loan for the planemaker, which burned through $677m in cash in the quarter. The firm said its decision to put staff on paid leave in January in order to finalize details of the Boeing deal was largely responsible for a 23% drop in revenue. <br/>