LatinNews Daily - 17 September 2024

*Brazilian aircraft manufacturer Embraer has announced that US manufacturer Boeing will pay US$150m in compensation for wrongful termination of a contract, marking the end of an arbitration process which began in 2020. The legal battle between the airplane manufacturers began after Boeing withdrew from a strategic partnership agreed in 2018. The deal would have seen the two manufacturing giants merge their commercial aviation operations to create a new joint venture in which Boeing would have held an 80% stake, with Embraer holding 20%. However, after the plans for the joint venture were confirmed and approved by Brazilian regulatory bodies, Boeing pulled out of the deal in 2020. Embraer alleged that Boeing failed to deliver on the agreement due to its own internal financial problems, through no fault of the Brazilian plane maker. In September this year, over four years after the start of the dispute, an arbitration court in the US ruled in favour of Embraer but reports in the Brazilian media suggest that the compensation sum was much lower than expected.