Boeing Mulls Embraer Tie-Up

Boeing is considering a potential combination with Embraer to expand into the smaller jet market. The deal could be a joint venture rather than a full takeover due to the Brazilian government's significant stake in Embraer. This move is seen as a response to Airbus's partnership with Bombardier, which threatens Boeing's smaller 737 models. The aerospace industry is highly competitive, with players like Sequoia and Mitsubishi also entering the market. Boeing aims to protect its market position by exploring this new segment.

What are the possible forms of the combination being discussed between Boeing and Embraer?

How might the Brazilian Government influence the potential deal between Boeing and Embraer?

What market segment would Boeing be entering if the deal with Embraer goes through?

What competitive pressures is Boeing responding to with this potential deal?

What concerns does Boeing have regarding the Airbus move and how does it relate to their strategy?