Embraer talks with Boeing advance, says defense minister

Negotiations between Brazilian planemaker Embraer and Boeing are moving forward, Brazil's Defense Minister Joaquim Silva e Luna told journalists during a security event in São Paulo. The minister stated that talks are progressing and predicted the discussions would ultimately lead to a partnership.

The Brazilian government initially opposed Boeing's official purchase proposal because Embraer holds critical military technology and leads the regional jet market. Boeing then shifted its approach to discuss a partial acquisition covering only commercial jets, which leaves out Embraer's defense operations.

Silva e Luna did not specify the exact structure under review. However, he noted that a partnership could help Embraer sell its KC-390 military cargo aircraft. Boeing sought the tie-up after European rival Airbus agreed to acquire the commercial jet program of Canada's Bombardier, Embraer's main competitor in the market for jets with up to 150 seats.

The minister said any deal will not be finalized before the middle of the year. Silva e Luna is an army general and the first military official to head the Ministry of Defense since its creation in 1999.