Collaboration takes flight

Embraer inks MoU with Fokker to collaborate on aerospace opportunities.

Embraer, the Brazilian aerospace and defence company, recently signed a memorandum of understanding (“MoU”) with Fokker Services Group, a Dutch multinational aerospace service provider to explore new common opportunities in defence, commercial and technical support operations.

A Brazilian aerospace specialist gave some historical context, “After going bankrupt in 1996, Fokker sold its manufacturing operations to competitors. It now provides mostly maintenance service but its alliance with companies like Embraer allows it to continue in the sector, using the knowledge to advance its business.”

Fokker’s expertise in complex engineering services and its variety of services ranging from sustainable aviation, high-end aircraft, engineering maintenance and aerospace activities offer Embraer new areas of collaboration and business development. A senior engineer at a French aerospace business explained the deal rationale from Embraer’s perspective, “Contrary to what is seems, Fokker is a smaller and less capable company than Embraer in technical terms but Embraer wants to strengthen its position in Europe and being able to say their maintenance services are supported by Fokker presents a more solid image.”

“Embraer wants to strengthen its position in Europe and being able to say their maintenance services are supported by Fokker presents a more solid image.”

Senior Engineer, aerospace business, France.

A Brazilian investment banker with knowledge of the deal commented, “The synergies that Fokker and Embraer can obtain through common cooperation are quite notable. As a global aircraft manufacturer, Embraer is an internationally attractive company that can open production plants wherever suits them better in business terms. For Fokker, this is an incredible opportunity to expand their presence in international markets.

The aerospace consultant continued, “While this is good news, Embraer is undergoing a difficult period after Boeing decided to withdraw from a deal to acquire its commercial aviation business. The company’s sales have dropped more than 30% after the announcement, which, coupled with the impact of the COVID-19 pandemic on the aviation sector have put the company in a delicate situation.”

“While this is good news, Embraer is undergoing a difficult period after Boeing decided to withdraw from a deal to acquire its commercial aviation business.”

Aerospace consultant, Brazil

Although Embraer and Fokker did not detail the extent of how its enhanced collaboration will result in tangible activities in Brazil, the MoU detailed that Fokker would provide support services to the Embraer’s C-390 Millennium aircraft. Used for military transport, specialised aviation publications suggest that the MoU could be the first step to sell C-390 aircraft to the Dutch Royal Air Force which retains an outdated Hercules fleet.

Fokker will also provide technical support to a number of Embraer’s support centres throughout the globe. At the defence level, Pakistan recently hired an Italian defence company to convert three Embraer Lineage 1000 regional jetliners into long-range maritime patrol aircraft for its navy. Furthermore, Embraer is currently bidding to win tenders to supply European carriers with commercial aircrafts. Thus, Embraer’s collaboration with Fokker will likely improve the chances of expanding the Brazilian’s business ambitions throughout the globe.

 

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