(By Balachander) Boeing Co. (NYSE: BA) and Brazil's Embraer (NYSE: ERJ) have agreed to collaborate on a program to develop Embraer's KC-390 military transport aircraft.
The companies said they will share some specific technical knowledge and evaluate markets where they may join their sales efforts for medium-lift military transport opportunities.
In April, the companies signed an agreement to pursue several areas of cooperation, including commercial aircraft features that enhance safety and efficiency, research and technology and sustainable aviation biofuels.
Boeing and Embraer will conduct a joint market assessment for the medium-lift military transport market and analyze business collaboration models. The market assessment includes potential customers that had not been considered in the initial market prospects for the KC-390.
In March 2012, Boeing, Embraer and Airbus announced a memorandum of understanding to work together on the development of drop-in, affordable aviation biofuels. In July 2011, Boeing and Embraer announced their intention to jointly fund an analysis of opportunities to produce sustainable aviation jet fuel from sugarcane.
Embraer manufacturers commercial jets up to 120 seats, and one of Brazil's leading exporters. Chicago, Illinois-based Boeing is the largest global aerospace company and manufacturer of commercial jetliners.