There is more to this transaction’s success than the finances
Integrating two highly competent aerospace manufacturers
Need to capture collective wisdom
The transaction between Boeing and Embraer has drawn a lot of attention from the financial analysts—was the price too high or too low; the financial reserves which Boeing has available; and the political implications to this deal of the upcoming Brazilian presidential election.
From an aircraft manufacturing perspective, this venture poses some substantial and tremendously impactful questions:
· Will the engineering departments remain as two independent organizations?
o There are distinctive differences in how these complex machines are designed. Has a comparison been made of the rubrics of each company?
o Both engineering methodologies are incredibly successful; so, will there be efforts to cross pollinate the advantages?
§ For example, Embraer has a reputation for reducing the costs of designing aircraft and implementing those specifications on the production line. Is that Embraer talent transferable to Boeing?
o The early days of joining the British, French, German and Spanish companies into one AIRBUS encountered some substantial cultural clashes.
§ Does that history discourage full integration?
§ Can the AIRBUS example be ignored because the joined team intended to build a single model aircraft?
§ Does the European experience provide lessons for the Embraer-Boeing venture, either as a fully integrated organization or as two allied manufacturers focused on different sized models?
· The world’s CAAs are moving toward a common, integrated certification approach.
o Does that trend point the companies toward integrating their certification processes?
o Both fleets have been certificated by authorities around the globe. Are there lessons to be learned from those experiences?
· The manufacturing/assembly plant in Sao Jose dos Campos is said to be a state of the art facility. Is this technology transferable to Renton?
- Bombardier (Canada)[AIRBUS], COMAC (China), Mitsubishi Regional Jet (Japan), and Sukhoi Superjet 100 (Russia) all pose challenges to Boeing and Embraer’s already developed, technologically sophisticated. proven and affordable (capital and operational) line of similarly sized aircraft are excellent replies.
The combination of these two aerospace with a history of innovation and in particular, a strong record of listening to their customers will likely produce generations of flight machines of the future!
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