Embraer and Bombardier now together
Valor Econômico - 04/23/2008
Embraer and Bombardier, after years of confrontation because of subsidies to develop its regional jets, can join now in the fight against a future competitor: Japan. Yesterday in Geneve Frederico Fleury Curado, president of the Brazilian company, and Steve Ridolfi, president of regional jets of the Canadian company, manifested their concern with supposed subsidies that the Japanese government would be granting to Mitsubishi to develop a 95-seat airplane that it wants to launch in the market in 2012. Curado said that, so far, he has based himself on the news published in the newspapers that Japan would be investing US$ 1 billion, that is, corresponding to two thirds of the project The executive has already spoken to the Brazilian government. China also produces a regional jet, but the conditions of subsidies is not clear. Russia is another competitor. However, Moscow is not part of the World Trade Organization (WTO) and the attack against possible subsidies becomes more complicated. The Canadian representative, on his turn, admitted that if Japan indeed gives subsidies, the case should end up in the WTO. For him, it will be simpler by the fact of Bombardier and Embraer being aligned, because the companies supported an agreement to control subsidies within the sphere of the Organization for Economic Cooperation and Development (OECD). In Geneve, Curado denied an agreement between Embraer and Indian Company Tata. And he made it clear that this far there has not been even a negotiation with the government of Argentina to produce the jet for the Presidency of the Republic, but that he will be happy if the order is confirmed.