Boeing and Embraer study closer ties on KC-390

Boeing, Embraer look into marketing KC-390 together as ties grow

Associated Press

CHICAGO (AP) -- Boeing Co. and Brazilian airplane maker Embraer SA said on Tuesday they will study the possibility of working together to sell Embraer's new cargo jet, another sign of the growing ties of the two companies.

Embraer said Boeing will help it study markets for the KC-390 that weren't part of its original marketing plan. It didn't say which ones.

Embraer's KC-390 is a medium-sized military cargo hauler and tanker. It competes with the C-130 made by Lockheed Martin, a defense competitor of Boeing's.

Boeing and Embraer also said they will "analyze business collaboration models" for the KC-390. In April, the two companies signed a broader agreement that will have them looking for ways to cooperate on efficiency and safety for commercial planes.

Tighter U.S. military spending has prompted Boeing to look for more defense business from other countries. Boeing has experience building large civilian and military planes, including the new U.S. Air Force tanker, which is based on Boeing's 767 jetliner. Embraer's civilian jets are much smaller, and the KC-390 is its biggest plane yet.

Shares of Chicago-based Boeing rose 10 cents to $71.15 in afternoon trading. Embraer's U.S.-traded shares fell 19 cents to $24.93.

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