Boeing’s Other Headache Is Its Joint Venture With Embraer

Is it time for Boeing Co. to worry about its proposed joint venture with Embraer SA? As the crisis of its grounded 737 Max jet drags on, Boeing’s planned partnership with the regional-aircraft maker hasn’t gotten much attention, but more than a year and a half after it was announced, the deal still hasn’t closed.

Boeing and Embraer outlined a preliminary agreement for a joint venture to sell regional aircraft—typically planes with 150 or fewer seats—in July 2018. It took five more months to hammer out the details, with Boeing ultimately agreeing to pay $4.2 billion for an 80% stake in the business, later dubbed Boeing Brasil–Commercial. Embraer and Boeing repeatedly projected confidence the deal could be wrapped up by the end of 2019. It wasn’t to be.