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Move the headquarters to Seattle, remove ALL McDonnell Douglas leftover management, de-emphasize MBAs and focus on engineering excellence and technical excellence and cutting edge technology. Move engineering and construction back in house. Boeing Starliner is a perfect representation of Boeing's state: Capable enough to build equipment that will people in serious life endangering danger.
Doesn’t need to be that drastic. You just need to throw away the money-eyed culture among the management, look after their employees and listen to them. In fact, they could learn from their employees.
While doing everything in house is ideal, I would suggest you look at the F-35 production which everything from final assembly to minor assembly and part production takes place around the world at many different suppliers and manufacturers. That shows it can be done assuming the suppliers can keep quality high at each of those locations. Plus if Boeing moved everything to in-house, the FAA would have to approve it, which given their keep oversight as of late they probably won't approve
Look at Bombardier, great product, sold out (yes yes, extenuating circumstances), and is now a shell of what it was only a couple years ago. Embraer is on the right track, if they stay independent. They’re the only major player in the large regional market besides now Airbus. Yes, Comac has one, but they’re selling like coffee in the desert.
This is the correct answer... Boeing now has the legacy of shortcuts and being business driven (rather than engineering driven). In all honesty Boeing should take the loss and take it as a wake up call. Quit trying to compete till their house is in order
Comac has a glaring problem that can’t easily be solved. Not only is the engineering suspect, so is the manufacturing. Being a Chinese company with no real track record isn’t easily solved.
@@garrettdouglass4549 Plus, their engines ain't exactly new (and that's on purpose, since everybody knows the chinese would just copy their design, so they just send an uprated old design where the chinese can't learn much new from by copying), so their efficiency can't keep up with western planes.
In 2018 Boeing had the money to buy Embraer. Today Boeing has a $3.9 Billion dollar loss just in this first quarter, with definite further losses going forward. Unless Embraer wants to sell for zero dollars, Boeing can't afford it. BTW: why was money not mentioned in this video? It's the single most important aspect of this subject.
Boeing will be very lucky to avoid bankruptcy, let alone have grandiose ideas about buying Embraer. Buying Spirit is going to be hard enough. But I have not heard any suggestion at all from anyone that they are even thinking of this, so where the hell is the premise of this video coming from?
@@idanceforpennies281 They almost bought Embraer. Even years ago, it made sense because they needed more engineers with experience, while they also needed a plane to compete against the A220. This still holds true today. The big difference, of course, is that Boeing is now in a financially bad place .
@@RM-el3gw and Embraer and the Brazilian Government are fighting against it on court to this day and to the bitter end. They see Boeing, for all intents and purposes, as bitter enemies after Boeing blamed Embraer as the cause of it not going ahead with the merger and Boeing started poaching their engineers. Not because they think they can get engineers back, but to show that such poaching practices would not be tolerated in Brazil. This point is specialy important to the government since all Brazilian aeronautics engineers and technicians in the country have their higher education and postgraduate studies and research funded by the government, there are clauses in their funding cont acts that if the person that had received such benefits from the Government wants to leave, it has to pay back the money invested on them, and it has to be inflation adjusted. The same can be said about factory workers, as the only schools that teaches how to work on the aviation industry are also funded by the government.
Coulda, woulda, shoulda. So far Embraer is doing fine without any financial issues to my knowledge, or liabilities. So what if they have 306 orders of the E2 on order? Better small but safe than large and a mess!
Plus Boeing and Airbus have enormous backlogs, so more airlines will have to go to Embraer. Embraer could do some small upgrades to the E-jets to make those an even more attractive alternative for those airlines which can't wait.
Bowling is not the kiss of death. The government is the problem, government, regulators, government, FAA workers, government is the issue if the plane is regulated, and something goes wrong then the regulator Shall be at fault. Airplanes, or anything else, pretty much shall not be regulated God bless the great company, Boeing let freedom fly.🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸
@@BlindBiker3yes Boeing is the problem due to their poor management and not being an engineering roots. The government is only a problem because they let Boeing do what ever they want due to Boeing military division.
Imagine if shareholders were on the hook for accidents caused by the companies they own stocks in. The prospect of getting jail time because you were partially responsible for the death of hundreds would suddenly make quality assurance a top priority.
100% this! The way the system works today is that those that have the capital (board of shareholders) are basically immune to anything - they have power without any accountability. If something gets them more money they WILL do it
Forget about Boeing aquiring Embraer, that's financially impossible. What I want to see is substantial investment into Embraer so that *THEY* can build a new medium airliner. That way we can have three larger airliner companies instead of two.
I don't think it's financially impossible. The price they agreed on in 2018 was very manageable, only a fraction of what Boeing spent on stock buybacks over the last 10 years.
Embraer profits with private jets. E-Jets are just larger versions of some of their private jets. I don't think they will risk building a big aircraft, specially due to lack of influence in Europe and USA.
@@filipesiegrist What???? The e2 family comes from the e jets (e1), and those were cleansheet. The legacy came from the ERJ35. They never built a commercial plane out of a private jet, though the yhave done the opposite. (legacy and lienage 1000)
@thedumbaviator5536 I'm not talking about history here. Just comparing technologies. If you compare E-195, E140, E120, Legacy and Phenom series you will see that there's not a big difference at all, comparing to 737/787 that are totally different planes
Financial executives who prioritze profit margins over technical excellence have plunged Boeing to hell. Stock prices have outrageously become more important than producing decently assembled aircrafts. The FAA's collusion with Boeing is also reprehensible which has also hepled plague this work ethic across Boeing's factories.
i suspect it had to more with keep cutting costs year over year,. at first not much was noticed as far as quality went, but the cuts kept coming, it got closer and closer to quality, until it did, and the cost cutting kept coming, tilt it put the company at risk of going out of business
What says Embraer still wants to get bought? Maybe Embraer goes in with Lockheed to buy Boeing - Lockheed takes all the defense stuff and Embraer gets Boeing Commercial. I don't know if Embraer and Lockheed have the cash, but Boeing definitely doesn't have spare cash lying around (or good credit).
Bombardier struggled selling because Boeing pushed for sanctions on their planes, opening the chance for Airbus to sweep in and buy them out. Boeing shot itself into the foot with that one.
It is not so much the merger but the outsourcing of the work to other companies. Before that Boeing had a great reputation and Calhoun was only looking to fatten his pockets and not focusing on the quality of work coming out of Boeing.i still believe there is sabotage somewhere
Boeings huge mistake was fighting against Bombardier and their CSeries. Instead THEY should have bought the CSeries programme. Extremely short sighted that was. Now their left with Embraer, amazing airplanes as well, they should go for it. 2020 was just very bad timing.
Boeing could’ve also poached the engineers from Mitsubishi that developed the Mitsubishi Spacejet, maybe they could’ve acquired and saved the Spacejet program
I've honestly think that may have been a good idea. If Boeing could've just acquiring the Mitsubishi Spacejet, it may have been able to not only save the program, but also able to compete with Embraer E-Jets, since the 717 (inheritated from the merger of MD) have end production in mid 2000s. Of course it may not be able to compete with A220, but at least it didn't left Boeing with only 737 as their small option. It's such a darn shame that such opportunity missed.
As a Brazilian, I pray to god that such acquisition doesn’t happen. There was excitement about growth and investment when the first deal was announced. Then they left the deal in a hostile manner, and the 737 Max debacle showed the world how Boeing’s corporate culture was toxic and dangerous. Embraer is one of few examples of modern and competitive Brazilian companies. One example that gives us pride. We don’t want a bunch of corrupt gringos destroying that. We have enough corruption and mismanagement in our plate elsewhere already.
It's really frustrating to see how the aviation industry is dominated by giants like Boeing and Airbus, especially when you consider how impressive Embraer's airplanes are in terms of performance and innovation. Embraer has consistently produced reliable and efficient aircraft, often outshining their competitors. However, it's disheartening to know that even with such a strong product lineup, Embraer's management is often overshadowed and outmaneuvered by the bigger players in the industry. The industry needs to recognize and support quality and innovation over sheer market power.
There’s multiple factors why this is the case but primarily it comes down to the larger companies having a wider range of products and also the power to get better deals within the supply chain. Airbus for example can offer airlines a wider range of products which can be consolidated into a single order thus offering more generous discounts. Bombardier only had the C Series to offer, so no such negotiation can be made. Similarly, Airbus produces significantly more aircraft than Bombardier and therefore buys significantly more raw materials. Bulk orders drive down cost. Also, the same materials are used across various programs, further driving down costs of the lower sellers such as the A330. In turn, this means Airbus can be more competitive and negotiate by dropping prices still at a profit for larger orders. It comes down to money at the end of the day, not really marketing power. Hence why sales of the A220 have leapt forward now that Airbus can drive down the manufacturing costs - it’s a very capable and efficient plane, but only at the right price!
I missheard the introduction the first time and understood 'buying Emirates' at 0:43 THAT would've turned out as a very different video and I can't even imagine how that would look like.
New Boeing Mgmt opens door for Embraer erasing past experience. Dehydration reduces fluid around the brain (hangover). Many hours in a dry air plane at altitude is dehydrating as is alcohol consumption. Replacing brain fluid takes time so drink fluids before, during and after flying, especially if you drink alcohol. Water works quite well although I can't speak to adding other supplements. 3 million FF miles says so.
it's a bad idea... if Boeing want anything to do with Embraer it should just pay Embraer to help them design a new aircraft or redesign my favorite the 757-200 into the 757-250ER... ER means Embraer Redesign... they can let Embraer build it for the US market in brazil facilities as the 757-250ER and then let Embraer sell the same aircraft outside the USA as the E-250 E2... plus like airbus the need to include the one system for all to their aircraft so i hope they can move all the Dreamliner avionics across the 737 platform and into my aircraft which is the redesign of the 757... so in theory the redesign 737 and a redesign 757 787 and 777 will all have the same flight platform...
In term of M&A, Embraer now can double the asking price (around $8b) for less stake (70% or less) if Boeing wants to renegotiate. On top of that, now BRICS countries are moving away from NATO nations which Brazilian government may not allow this deal happen in the future, IMHO
I wouldn't like Boeing buying Embraer Commercial, just for the reasons you mentioned: Boeing ethos just seeks profit, and Embraer is doing pretty well after the divorce. And now, no one would like to get involved with Boeing. Why a company with an impeccable record would like to sell their very well-managed division, that produces great planes, to Boeing? On the contrary, this is THE MOMENT for Embraer to go and build a NB to compete directly with Boeing and Airbus. You said it: Brazil has lower labor costs, but doesn't mean lack of quality. They have a great upper hand here and the demand in the market is huge. The worst mistake in the history of Boeing was merging with McDonell Douglas and the culture change was so deep that going back to the track will be a monumental task. It would be more important to buy Spirit AeroSystems in the first place and bring back their headquarters to Seattle.
We, Brazilians, dislike the idea of Boeing buying Embraer… it won’t just take out one of our country’s pride companies, bur would screw it over as well. The Boeing leadership is too incompetent to do something like this right now.
No disrespect, but after the Boeing-Embraer joint venture didn't succeed, I've heard many big guys in embraer thanking God after the max disasters. Besides that, there are no saints in this business, some former embraer executives said openly that they could take boeing over from inside over the years... doesn't matter the country it's from, embraer has military DNA, with military engineers, so I don't know how convenient it would be for such strategic company in the US.
Easy way to fix Boeing, would be to have the FBI, State Police & FAA together randomly walk into the factories & randomly alcohol & drug test anybody; from the factory to the board room. From Everett to Charlestown. Breath test for alcohol & saliva test for drugs. THAT will be a huge improvement. Oh & also their suppliers to, as their parts are also made at other factories from 3rd party manufacturers who Boeing contract to. Start with the testing first & see the improvement.
Shareholders will demand returns so they will continue to do the same dysfunction as gov will bail it out thanks to its immense gov contracts which have no competition thanks to lobbying.
@@jimaccornero3688 Boeing buying Embraer would make some sense in a limited way, but it's financially impossible. Boeing is in a massive financial black hole with more problems than a 30 year old FIAT.
Boeing taking over Embraer is a terrible idea, as it reduces competition in an already limited airplane industry market. Additionally, Boeing is currently in a hot mess dealing with issues stemming from years of low quality control, mismanagement, corruption, and poor decision-making. I believe airline carriers should somehow get together and invest in Embraer to develop a new wide-body aircraft, so they woudn't be forever stuck on the Airbus-Boeing duopoly. While Comac may become a viable option in the future, it's a new company that will need time to gain trust outside of China.
How about building a damn good airplane that no one can pass on buying, something like Sugar Volt +++, something that gets a 30-50% efficiency jump, but this proposed merger, maybe.
Boeing are going to have to make big concessions to their machinists in the ongoing contract negotiations. They really have Boieing's management by the balls and are higly unlikely to back down after what happened at the last contract negotiation. Boeing are also going to have to provide some sort of financial compensation to their big domestic customers for losses caused by the 737 Max issues. They are likely going to have to buy back a still uncertain amount of what they sold to Spirit Aerosystems. There is no way they can Embraer cheap. The only reason Airbus was able to buy the Bombadier C series for a song was because Bombadier and the Canadian government were desperate. Embraer will hold out for a really big payment which would be a massive financial risk for Boeing.
The trouble WITH AMERICAN competition is it usually involves shareholders and greedy CEOs which means cost cutting which means corner cutting which means....yep we know the story.
Boeing is never buying Embraer after the unilateral dissolution of the merge in 2020. Also, Boeing opened an engineering office in Brazil and has been stealing Embraer engineers ever since. Relations between the two are bitter, at least in the commercial sector.
Several months ago, South Korean Air Force decided to buy Embraer C-390 over Lockheedmartin C-130J and Airbus A400M. Considering that Boeing is currently trying to overcharge E-7 to South Korean Air Force in a massive scale, I think the Air Force is super happy that the deal failed.
Yes and no I can't fully blame Boeing... It was the beginning of the pandemic and almost all travel was stopped to control the spread of COVID-19 No one predicted that the pandemic would end by the end of 2022.. for all of us we could have stayed until 2024 but we got back to normalcy really quickly
@@desertblade1874 imagine ending up with little cash because you spent most of the last decade buying back stocks and making poorly engineered aircraft that would eventually be grounded due to fundamental issues. Pandemic was a huge factor, but Boeing was already deep in s8it by the time the pandemic came around
@@RM-el3gw well that sound like MDC, course they stopped building commercial and just focused on military orders. well Douglas was the commercial business, and they had all sorts of quality problems before the merger. McDonnel was more the military business. and while there were hick ups there, it wasnt as bad as Douglass
To merger Boeingbraire would be a disaster for Embraer. Beside the Brazilian goverment has made it clear that their Air Industry is to remain a national product and keep production "at home." This for the jobs and also the technical knowledge in house. Having lived in Brazil for 5 years previously this has been a big issue. To lose a big successful company ( yes lose because is the long run that would lead to production being moved to the states) would be an economic back lash in an already pushed economy. If any more fails happen for Boeing that would be a disaster for all companies connected to them. Boeing needs to straighten their jackets and get their act back on track first.
Embraer is stable, comfortably positioned in its market, boeing is in chaos mode, no money to buy embraer, also the deal is not possible considering the terms that were agreed upon when embraer was made private in the 90s
Cody, it would be a bad move for Embraer. The best possibility to keep Boeing in the industry is to sell or partner with Comac. Build the planes in China or Saudi Arabia at a much lower price and with much higher levels of quality. Boeing would have to spin off their Military/Defense specific units, but in that, the name and business will survive.
I believe a deal with Embraer would do Boeing some good utilizing the engineers of such high standard and save Boeing. And giving Embraer the financial strength it needs
yea, no. This makes no sense. 1 embraer dosent want to. 2 boeing dosent have the money to. rn embraer is doing better than boeing. If they design something to compete with the 737 or a320, they could grow. A lot.
Perhaps a better strategy than buying Embraer to get engineering knowledge would be to just contract Northrop-Grumman to design the 797. I'm pretty sure they could scale up to do this, and they have some of the best engineers in aerospace.
An other possibility is Boeing send their product to Brazil to be build for free (B737 maxs or/ and B787s) and Embraer demand that Boeing push the limit on weight to 100 000 lb so they can sell the E175-E2 in exchange. Embraer wouldn't sell their program just for fun or for money. So it is like getting with your ex situation.
Airbus should buy them out. People can scoff and joke all they want, but Airbus have taken the top spot from Boeing in terms of sales, deliveries and safety records. There is no doubting Airbus' quality, especially compared to Boeing. The state of the aviation market speaks for itself
0:44 - Thea tried. Boeing doesn't have the equivalent of Bombardier C-series small narrowbodies, which American carrier need. So, they used their tame politicians to impose 300% tariff on C series under some nebulous pretext of Canadian government help to Bombardier (as if the development of everything from B707 to 747 wasn't directly financed by military contracts.) Bombardier threw in the towel switching to producing only business jets, and selling C-series to Airbus for, IIRC, 1 canadian dollar. Airbus said "Tralalala, this will be assembled in Alabama, therefore it is an American products, therefore no tariffs". So, in their infinite wisdom, Boeing beancounters helped Airbus acquire its second best selling line, A220 (after A320 NEO line). Having shot themselves in the foot, they tried to emulate Airbus and buy Embraer for peanuts. The problem is, Brazilians are not in the same position as Canadians were, and they asked for a pretty giant pile of peanuts, so the deal fell through, I think that the problems with quality Boeing is experiencing are too monumental that Embraer could significantly help.
Boeing going into Embraer, but they will want to do things their way, instead of the other way around. I believe the Brazilians are helping the Chinese to build their C-919.
My understanding is that Boeing doesn't have the money to do it, especially if they can complete the Spirit insourcing move. That is already putting them in a bad debt situation, and the struggling MAX sales means they're not bringing in the money they need to service that kind of debt.
As a Quality Engineer who worked on the 787, etc; why not a word about "Risk Management" or "Risk Mitigation"? Nothing about following existing procedures that are proven to work. Boeing has been using bolts to hold their planes together for 100 years. Why is it suddenly now somebody "forgot" to install the bolts to hold the plug door on the 737 Max 9? START FOLLOWING EXISTING PROCEDURES.
Remember when Boeing accused Bombardier of unfair competition. Bombardier had been imposed duties of nearly 300% on its planes, which were cancelled by the U.S. International Trade Commission. Now Bombardier belongs to Airbus, and the C-Series program is thriving ..... partly because of or thanks to Boeing. That's Karma.....
As a ramp agent, I think the E190 is one of the worst aircraft I have ever worked on. When comparing to similar sized aircraft, I prefer working on the A220, 717, and Dash 8 over E190. The amount of netting and the weight sensitivity of the aircraft can make it very difficult to load in a 40 minute turn.
Boeing has to pay much more for Embraer today than they offered Embraer earlier. I'm not sure Embraer wants Boeing knowing all the problems Boeing has.
They need to move their headquarters to where engineers, people directly responsible for designing and assembling Boeing aircraft, and the company's managers can have some direct contact with each other. Having Boeing's senior managers focusing on kissing up to and placating stockholders instead of carefully overseeing aircraft designing and manufacturing hasn't done much for the company.
I don't agree tbh. If it were to happen, Boeing could possibly ruin Embraer, which is the pride of Brazil and possibly affect their defence division as well. Boeing might make yet another short sighted move by taking all the resources they want from Embraer and then dumping it.
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yoo
You're gonna leave this up for 4 weeks before you release a new video or realise this merger wouldn't fix a thing.
Move the headquarters to Seattle, remove ALL McDonnell Douglas leftover management, de-emphasize MBAs and focus on engineering excellence and technical excellence and cutting edge technology. Move engineering and construction back in house. Boeing Starliner is a perfect representation of Boeing's state: Capable enough to build equipment that will people in serious life endangering danger.
What this guy said...
Doesn’t need to be that drastic. You just need to throw away the money-eyed culture among the management, look after their employees and listen to them. In fact, they could learn from their employees.
dreams Amelia, dreams and false alarms...
Boom. This ^
While doing everything in house is ideal, I would suggest you look at the F-35 production which everything from final assembly to minor assembly and part production takes place around the world at many different suppliers and manufacturers. That shows it can be done assuming the suppliers can keep quality high at each of those locations. Plus if Boeing moved everything to in-house, the FAA would have to approve it, which given their keep oversight as of late they probably won't approve
Then Boeing would become to Embraer what McDonnell-Douglas was for Boeing.
Embraer could do fine without Boeing.
Real one
Look at Bombardier, great product, sold out (yes yes, extenuating circumstances), and is now a shell of what it was only a couple years ago.
Embraer is on the right track, if they stay independent. They’re the only major player in the large regional market besides now Airbus. Yes, Comac has one, but they’re selling like coffee in the desert.
This is the correct answer... Boeing now has the legacy of shortcuts and being business driven (rather than engineering driven).
In all honesty Boeing should take the loss and take it as a wake up call. Quit trying to compete till their house is in order
Comac has a glaring problem that can’t easily be solved. Not only is the engineering suspect, so is the manufacturing. Being a Chinese company with no real track record isn’t easily solved.
@@garrettdouglass4549 Plus, their engines ain't exactly new (and that's on purpose, since everybody knows the chinese would just copy their design, so they just send an uprated old design where the chinese can't learn much new from by copying), so their efficiency can't keep up with western planes.
This is an episode of "How to ruin Embraer".
Boeing would take Embraer's excelence to the ground. Embraer is doing more than fine in the segment they're tackling.
In 2018 Boeing had the money to buy Embraer. Today Boeing has a $3.9 Billion dollar loss just in this first quarter, with definite further losses going forward. Unless Embraer wants to sell for zero dollars, Boeing can't afford it. BTW: why was money not mentioned in this video? It's the single most important aspect of this subject.
Boeing will be very lucky to avoid bankruptcy, let alone have grandiose ideas about buying Embraer. Buying Spirit is going to be hard enough. But I have not heard any suggestion at all from anyone that they are even thinking of this, so where the hell is the premise of this video coming from?
@@idanceforpennies281 They almost bought Embraer. Even years ago, it made sense because they needed more engineers with experience, while they also needed a plane to compete against the A220. This still holds true today.
The big difference, of course, is that Boeing is now in a financially bad place .
Don’t Worry. US Army won’t let Boeing bankrupt.
@@RM-el3gw and Embraer and the Brazilian Government are fighting against it on court to this day and to the bitter end. They see Boeing, for all intents and purposes, as bitter enemies after Boeing blamed Embraer as the cause of it not going ahead with the merger and Boeing started poaching their engineers.
Not because they think they can get engineers back, but to show that such poaching practices would not be tolerated in Brazil.
This point is specialy important to the government since all Brazilian aeronautics engineers and technicians in the country have their higher education and postgraduate studies and research funded by the government, there are clauses in their funding cont acts that if the person that had received such benefits from the Government wants to leave, it has to pay back the money invested on them, and it has to be inflation adjusted.
The same can be said about factory workers, as the only schools that teaches how to work on the aviation industry are also funded by the government.
Also Boeing can even go bankrupt but they American government will find a way to bail them out, like they did with the banks in 2008.
Coulda, woulda, shoulda. So far Embraer is doing fine without any financial issues to my knowledge, or liabilities. So what if they have 306 orders of the E2 on order? Better small but safe than large and a mess!
Plus Boeing and Airbus have enormous backlogs, so more airlines will have to go to Embraer.
Embraer could do some small upgrades to the E-jets to make those an even more attractive alternative for those airlines which can't wait.
@@rudivandoornegat2371 they do indeed
Boeing is the kiss of death, why destroy Embraer?
Bowling is not the kiss of death. The government is the problem, government, regulators, government, FAA workers, government is the issue if the plane is regulated, and something goes wrong then the regulator Shall be at fault. Airplanes, or anything else, pretty much shall not be regulated God bless the great company, Boeing let freedom fly.🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸
@@BlindBiker3yes Boeing is the problem due to their poor management and not being an engineering roots. The government is only a problem because they let Boeing do what ever they want due to Boeing military division.
just make planes out of plastic
@@bluelithium9808 the FAA and FAA employees is are the problem, not Boeing.
@@a319ceo it’s so sad what the government has done to Boeing, God bless the heroes at boeing.
Imagine if shareholders were on the hook for accidents caused by the companies they own stocks in. The prospect of getting jail time because you were partially responsible for the death of hundreds would suddenly make quality assurance a top priority.
100% this! The way the system works today is that those that have the capital (board of shareholders) are basically immune to anything - they have power without any accountability. If something gets them more money they WILL do it
Forget about Boeing aquiring Embraer, that's financially impossible. What I want to see is substantial investment into Embraer so that *THEY* can build a new medium airliner. That way we can have three larger airliner companies instead of two.
I don't think it's financially impossible. The price they agreed on in 2018 was very manageable, only a fraction of what Boeing spent on stock buybacks over the last 10 years.
@@RM-el3gw Boeing hasn't got any money. It's not 2018 anymore, Boeing has a current quarter loss of 3.9 billion and it's getting worse.
Embraer profits with private jets. E-Jets are just larger versions of some of their private jets. I don't think they will risk building a big aircraft, specially due to lack of influence in Europe and USA.
@@filipesiegrist What???? The e2 family comes from the e jets (e1), and those were cleansheet. The legacy came from the ERJ35. They never built a commercial plane out of a private jet, though the yhave done the opposite. (legacy and lienage 1000)
@thedumbaviator5536 I'm not talking about history here. Just comparing technologies. If you compare E-195, E140, E120, Legacy and Phenom series you will see that there's not a big difference at all, comparing to 737/787 that are totally different planes
Financial executives who prioritze profit margins over technical excellence have plunged Boeing to hell. Stock prices have outrageously become more important than producing decently assembled aircrafts. The FAA's collusion with Boeing is also reprehensible which has also hepled plague this work ethic across Boeing's factories.
4:28
Boeing:
One door closes, another one opens😂😂😂😂😂😂
Boeing is suffering because the mcdonald Douglas employees bringing cost cutting, but it is allowed to go on longer because of lacking competition
i suspect it had to more with keep cutting costs year over year,. at first not much was noticed as far as quality went, but the cuts kept coming, it got closer and closer to quality, until it did, and the cost cutting kept coming, tilt it put the company at risk of going out of business
@@bdwWilliams-y7q high time preferences (meaning short-term thought process)
What says Embraer still wants to get bought? Maybe Embraer goes in with Lockheed to buy Boeing - Lockheed takes all the defense stuff and Embraer gets Boeing Commercial. I don't know if Embraer and Lockheed have the cash, but Boeing definitely doesn't have spare cash lying around (or good credit).
Bombardier struggled selling because Boeing pushed for sanctions on their planes, opening the chance for Airbus to sweep in and buy them out. Boeing shot itself into the foot with that one.
Embraer will always be Embraer in my heart
Mergers got us into this mess; im skeptical that they'll get us out of it
It is not so much the merger but the outsourcing of the work to other companies. Before that Boeing had a great reputation and Calhoun was only looking to fatten his pockets and not focusing on the quality of work coming out of Boeing.i still believe there is sabotage somewhere
Boeings huge mistake was fighting against Bombardier and their CSeries. Instead THEY should have bought the CSeries programme. Extremely short sighted that was.
Now their left with Embraer, amazing airplanes as well, they should go for it. 2020 was just very bad timing.
Boeing could’ve also poached the engineers from Mitsubishi that developed the Mitsubishi Spacejet, maybe they could’ve acquired and saved the Spacejet program
I've honestly think that may have been a good idea.
If Boeing could've just acquiring the Mitsubishi Spacejet, it may have been able to not only save the program, but also able to compete with Embraer E-Jets, since the 717 (inheritated from the merger of MD) have end production in mid 2000s. Of course it may not be able to compete with A220, but at least it didn't left Boeing with only 737 as their small option.
It's such a darn shame that such opportunity missed.
As a Brazilian, I pray to god that such acquisition doesn’t happen. There was excitement about growth and investment when the first deal was announced. Then they left the deal in a hostile manner, and the 737 Max debacle showed the world how Boeing’s corporate culture was toxic and dangerous.
Embraer is one of few examples of modern and competitive Brazilian companies. One example that gives us pride. We don’t want a bunch of corrupt gringos destroying that. We have enough corruption and mismanagement in our plate elsewhere already.
you forgot one part about the whistleblowers: they'll tell troubling tales, then they conveniently bite the dust
There are very few aircraft producers as it is, lets hope it doesnt get even fewer
It's really frustrating to see how the aviation industry is dominated by giants like Boeing and Airbus, especially when you consider how impressive Embraer's airplanes are in terms of performance and innovation. Embraer has consistently produced reliable and efficient aircraft, often outshining their competitors. However, it's disheartening to know that even with such a strong product lineup, Embraer's management is often overshadowed and outmaneuvered by the bigger players in the industry. The industry needs to recognize and support quality and innovation over sheer market power.
Imagine airlines aiding the development of a new plane design competing with the 737.
Demand for planes isn't going away anytime soon.
lol this is such an airheaded rant.
There’s multiple factors why this is the case but primarily it comes down to the larger companies having a wider range of products and also the power to get better deals within the supply chain.
Airbus for example can offer airlines a wider range of products which can be consolidated into a single order thus offering more generous discounts. Bombardier only had the C Series to offer, so no such negotiation can be made.
Similarly, Airbus produces significantly more aircraft than Bombardier and therefore buys significantly more raw materials. Bulk orders drive down cost. Also, the same materials are used across various programs, further driving down costs of the lower sellers such as the A330. In turn, this means Airbus can be more competitive and negotiate by dropping prices still at a profit for larger orders.
It comes down to money at the end of the day, not really marketing power. Hence why sales of the A220 have leapt forward now that Airbus can drive down the manufacturing costs - it’s a very capable and efficient plane, but only at the right price!
this guy never seems to let go of embraer
Yeah he talks a lot of shit about embraer
I third this comment and agree he talks a ton of shit about them
I missheard the introduction the first time and understood 'buying Emirates' at 0:43
THAT would've turned out as a very different video and I can't even imagine how that would look like.
New Boeing Mgmt opens door for Embraer erasing past experience. Dehydration reduces fluid around the brain (hangover). Many hours in a dry air plane at altitude is dehydrating as is alcohol consumption. Replacing brain fluid takes time so drink fluids before, during and after flying, especially if you drink alcohol. Water works quite well although I can't speak to adding other supplements. 3 million FF miles says so.
it's a bad idea... if Boeing want anything to do with Embraer it should just pay Embraer to help them design a new aircraft or redesign my favorite the 757-200 into the 757-250ER... ER means Embraer Redesign... they can let Embraer build it for the US market in brazil facilities as the 757-250ER and then let Embraer sell the same aircraft outside the USA as the E-250 E2... plus like airbus the need to include the one system for all to their aircraft so i hope they can move all the Dreamliner avionics across the 737 platform and into my aircraft which is the redesign of the 757... so in theory the redesign 737 and a redesign 757 787 and 777 will all have the same flight platform...
Thank you for your well researched and clearly "explaned" videos. Just a treat to hear great insights from someone who really loves the field.
In term of M&A, Embraer now can double the asking price (around $8b) for less stake (70% or less) if Boeing wants to renegotiate. On top of that, now BRICS countries are moving away from NATO nations which Brazilian government may not allow this deal happen in the future, IMHO
I wouldn't like Boeing buying Embraer Commercial, just for the reasons you mentioned: Boeing ethos just seeks profit, and Embraer is doing pretty well after the divorce.
And now, no one would like to get involved with Boeing. Why a company with an impeccable record would like to sell their very well-managed division, that produces great planes, to Boeing?
On the contrary, this is THE MOMENT for Embraer to go and build a NB to compete directly with Boeing and Airbus.
You said it: Brazil has lower labor costs, but doesn't mean lack of quality. They have a great upper hand here and the demand in the market is huge.
The worst mistake in the history of Boeing was merging with McDonell Douglas and the culture change was so deep that going back to the track will be a monumental task. It would be more important to buy Spirit AeroSystems in the first place and bring back their headquarters to Seattle.
We, Brazilians, dislike the idea of Boeing buying Embraer… it won’t just take out one of our country’s pride companies, bur would screw it over as well. The Boeing leadership is too incompetent to do something like this right now.
No disrespect, but after the Boeing-Embraer joint venture didn't succeed, I've heard many big guys in embraer thanking God after the max disasters.
Besides that, there are no saints in this business, some former embraer executives said openly that they could take boeing over from inside over the years... doesn't matter the country it's from, embraer has military DNA, with military engineers, so I don't know how convenient it would be for such strategic company in the US.
I’m not sure that the Brazilian government would let Boeing buy Embraer, that was why the original agreement wasn’t a purchase.
Easy way to fix Boeing, would be to have the FBI, State Police & FAA together randomly walk into the factories & randomly alcohol & drug test anybody; from the factory to the board room. From Everett to Charlestown. Breath test for alcohol & saliva test for drugs. THAT will be a huge improvement. Oh & also their suppliers to, as their parts are also made at other factories from 3rd party manufacturers who Boeing contract to. Start with the testing first & see the improvement.
Shareholders will demand returns so they will continue to do the same dysfunction as gov will bail it out thanks to its immense gov contracts which have no competition thanks to lobbying.
Being needs to hit them up with the "Hey big head" email letter 😂
The world certainly needs a third Western maker of airliners. Embraer is also important to Brazil’s economic development. So, no.
Coby has either to write science fiction books or to work for a tabloid
Ha ha ha
I was expecting just another Boeing bashing video, but he finally put out something that makes some sense.
@@jimaccornero3688 Boeing buying Embraer would make some sense in a limited way, but it's financially impossible. Boeing is in a massive financial black hole with more problems than a 30 year old FIAT.
Only way it would fix Boeing is if you put Embraer in charge as some kind of reverse merger
otherwise you are just adding cargo to a sinking ship
Boeing taking over Embraer is a terrible idea, as it reduces competition in an already limited airplane industry market. Additionally, Boeing is currently in a hot mess dealing with issues stemming from years of low quality control, mismanagement, corruption, and poor decision-making. I believe airline carriers should somehow get together and invest in Embraer to develop a new wide-body aircraft, so they woudn't be forever stuck on the Airbus-Boeing duopoly. While Comac may become a viable option in the future, it's a new company that will need time to gain trust outside of China.
You know who does have whatever money it would take to buy Embraer? China.
No. Embraer does not need Boeing as much as Boeing would need them. In fact, Boeing would contaminate a well run company.
This guys suggests the craziest and says Hold up "Let me explain".
How about building a damn good airplane that no one can pass on buying, something like Sugar Volt +++, something that gets a 30-50% efficiency jump, but this proposed merger, maybe.
Boeing are going to have to make big concessions to their machinists in the ongoing contract negotiations. They really have Boieing's management by the balls and are higly unlikely to back down after what happened at the last contract negotiation.
Boeing are also going to have to provide some sort of financial compensation to their big domestic customers for losses caused by the 737 Max issues. They are likely going to have to buy back a still uncertain amount of what they sold to Spirit Aerosystems.
There is no way they can Embraer cheap. The only reason Airbus was able to buy the Bombadier C series for a song was because Bombadier and the Canadian government were desperate. Embraer will hold out for a really big payment which would be a massive financial risk for Boeing.
The real solution to Boeing's dilemma is this - it's time for Lockheed Martin to return to commercial aviation to give them AMERICAN competition.
The trouble WITH AMERICAN competition is it usually involves shareholders and greedy CEOs which means cost cutting which means corner cutting which means....yep we know the story.
Would be kinda neat if they could bring back the L1011 with just 2 new engines so they could compete with the 777 and 350
The way things are being managed at Boeing is more likely that Embraer will buy Boeing… 😂😂😂
Boeing is never buying Embraer after the unilateral dissolution of the merge in 2020. Also, Boeing opened an engineering office in Brazil and has been stealing Embraer engineers ever since. Relations between the two are bitter, at least in the commercial sector.
Several months ago, South Korean Air Force decided to buy Embraer C-390 over Lockheedmartin C-130J and Airbus A400M. Considering that Boeing is currently trying to overcharge E-7 to South Korean Air Force in a massive scale, I think the Air Force is super happy that the deal failed.
God NO!!! Boeing would only destroy theCompany. Unless they moved the headquarters to Brazil and fired the entire C and E suites
Sounds like Boeing should have never cancelled the Embraer deal in the first place 🤷
Yes and no
I can't fully blame Boeing... It was the beginning of the pandemic and almost all travel was stopped to control the spread of COVID-19
No one predicted that the pandemic would end by the end of 2022.. for all of us we could have stayed until 2024 but we got back to normalcy really quickly
@@desertblade1874 imagine ending up with little cash because you spent most of the last decade buying back stocks and making poorly engineered aircraft that would eventually be grounded due to fundamental issues. Pandemic was a huge factor, but Boeing was already deep in s8it by the time the pandemic came around
@@RM-el3gw well that sound like MDC, course they stopped building commercial and just focused on military orders. well Douglas was the commercial business, and they had all sorts of quality problems before the merger. McDonnel was more the military business. and while there were hick ups there, it wasnt as bad as Douglass
Yes, a case of short memory.
This ship has already sailed...
Or Embraer could do what McD did and buy Boeing with Boeing's money... Embraer e9, aka 797?
To merger Boeingbraire would be a disaster for Embraer. Beside the Brazilian goverment has made it clear that their Air Industry is to remain a national product and keep production "at home." This for the jobs and also the technical knowledge in house. Having lived in Brazil for 5 years previously this has been a big issue. To lose a big successful company ( yes lose because is the long run that would lead to production being moved to the states) would be an economic back lash in an already pushed economy. If any more fails happen for Boeing that would be a disaster for all companies connected to them. Boeing needs to straighten their jackets and get their act back on track first.
Been upgraded to business class a few times....nice experience better seats food and service
Embraer does seem good.
Embraer is stable, comfortably positioned in its market, boeing is in chaos mode, no money to buy embraer, also the deal is not possible considering the terms that were agreed upon when embraer was made private in the 90s
no one realized bros fcked "Hot to Fix Boeing in One Easy Step"
I came to the comments 2 c if anyone mentioned it
Great video! Seems like Embraer would be giving up a lot more than Boeing would be to make this deal work.
Cody, it would be a bad move for Embraer. The best possibility to keep Boeing in the industry is to sell or partner with Comac. Build the planes in China or Saudi Arabia at a much lower price and with much higher levels of quality. Boeing would have to spin off their Military/Defense specific units, but in that, the name and business will survive.
OMG! Embraer does not need Boeing.
I believe a deal with Embraer would do Boeing some good utilizing the engineers of such high standard and save Boeing. And giving Embraer the financial strength it needs
I find it really funny the assumption that just by buying Embraer Boeing's problems would magically disappear
You know times have changed when someone from the US alludes to the superiority of "Made in Brazil" above "Made in the USA."
They've come a long way from just exporting cheap Volkwagen parts.
How Boeing ruined themself: Less bolt for higher delivery Rate
I want Embraer and Bombardier to remain independent. Otherwise the duopoly would be absolute.
Video Title: Hot to Fix Boeing in One Easy Step. 😝
I was thinking about how Boeing problems came from McDonnell Douglas and now this came out… no way my brain is him
yea, no. This makes no sense. 1 embraer dosent want to. 2 boeing dosent have the money to. rn embraer is doing better than boeing. If they design something to compete with the 737 or a320, they could grow. A lot.
Perhaps a better strategy than buying Embraer to get engineering knowledge would be to just contract Northrop-Grumman to design the 797. I'm pretty sure they could scale up to do this, and they have some of the best engineers in aerospace.
Can you do a video on the recent ElAl 737 max order because they almost broke being only Boeing
An other possibility is Boeing send their product to Brazil to be build for free (B737 maxs or/ and B787s) and Embraer demand that Boeing push the limit on weight to 100 000 lb so they can sell the E175-E2 in exchange. Embraer wouldn't sell their program just for fun or for money. So it is like getting with your ex situation.
Scope will not break or change any time soon. The pilot unions are strong right now. Scope is there number 1 concern.
Airbus should buy them out. People can scoff and joke all they want, but Airbus have taken the top spot from Boeing in terms of sales, deliveries and safety records. There is no doubting Airbus' quality, especially compared to Boeing. The state of the aviation market speaks for itself
Colby. Always good. Boeing needs all the help it can get. That deal makes sense.
Boeing just followed the rest of the US, focusing on financials, short term profit and shareholder value over long term success and customer value.
With Boeing's merger history, Embraer will buy Boeing with its own money and replace Boeing's management team.
The last thing anyone needs is more monopoly
How can Boeing buy Embraer if they can’t afford to buy Spirit aero systems ?
So breaking this down it looks like your main idea is shipping jobs overseas where costs are cheaper. Brilliant - groundbreaking = thanks.
I always hate it when my alcohol-fueled jet-setting lifestyle makes me cranky at my polo match the next day.
the first 50 seconds of thsi video are hilarious
How?
Shake things up, yes, but also file lawsuits against the mainstream media for defamation of character and false reporting.
0:44 - Thea tried. Boeing doesn't have the equivalent of Bombardier C-series small narrowbodies, which American carrier need. So, they used their tame politicians to impose 300% tariff on C series under some nebulous pretext of Canadian government help to Bombardier (as if the development of everything from B707 to 747 wasn't directly financed by military contracts.) Bombardier threw in the towel switching to producing only business jets, and selling C-series to Airbus for, IIRC, 1 canadian dollar. Airbus said "Tralalala, this will be assembled in Alabama, therefore it is an American products, therefore no tariffs". So, in their infinite wisdom, Boeing beancounters helped Airbus acquire its second best selling line, A220 (after A320 NEO line).
Having shot themselves in the foot, they tried to emulate Airbus and buy Embraer for peanuts. The problem is, Brazilians are not in the same position as Canadians were, and they asked for a pretty giant pile of peanuts, so the deal fell through,
I think that the problems with quality Boeing is experiencing are too monumental that Embraer could significantly help.
Former disgruntled Boeing engineers moved to Beazil and STARTED Embraer after the sale to MacD. This is stupid.
Boeing going into Embraer, but they will want to do things their way, instead of the other way around. I believe the Brazilians are helping the Chinese to build their C-919.
Hmm, Boeing has a problem, so let's buy Embraer.
Now we have two problems.
My understanding is that Boeing doesn't have the money to do it, especially if they can complete the Spirit insourcing move. That is already putting them in a bad debt situation, and the struggling MAX sales means they're not bringing in the money they need to service that kind of debt.
As a Quality Engineer who worked on the 787, etc; why not a word about "Risk Management" or "Risk Mitigation"? Nothing about following existing procedures that are proven to work. Boeing has been using bolts to hold their planes together for 100 years. Why is it suddenly now somebody "forgot" to install the bolts to hold the plug door on the 737 Max 9? START FOLLOWING EXISTING PROCEDURES.
Embraer gonna buy Boeing with Boeing's money
Remember when Boeing accused Bombardier of unfair competition. Bombardier had been imposed duties of nearly 300% on its planes, which were cancelled by the U.S. International Trade Commission. Now Bombardier belongs to Airbus, and the C-Series program is thriving ..... partly because of or thanks to Boeing. That's Karma.....
Coby, you really need to improve on your pronunciation of non-english terms. Even for me as a German, it is horrible how you speak out French words.
As a ramp agent, I think the E190 is one of the worst aircraft I have ever worked on. When comparing to similar sized aircraft, I prefer working on the A220, 717, and Dash 8 over E190. The amount of netting and the weight sensitivity of the aircraft can make it very difficult to load in a 40 minute turn.
Boeing has to pay much more for Embraer today than they offered Embraer earlier.
I'm not sure Embraer wants Boeing knowing all the problems Boeing has.
no military design or involvement. no religions, only logic. and build from old blueprints. no politicial interference. just riveting
Fascinating take!
They need to move their HQs where the investors are to get better insight on how to make the numbers.
They need to move their headquarters to where engineers, people directly responsible for designing and assembling Boeing aircraft, and the company's managers can have some direct contact with each other. Having Boeing's senior managers focusing on kissing up to and placating stockholders instead of carefully overseeing aircraft designing and manufacturing hasn't done much for the company.
I don't agree tbh. If it were to happen, Boeing could possibly ruin Embraer, which is the pride of Brazil and possibly affect their defence division as well. Boeing might make yet another short sighted move by taking all the resources they want from Embraer and then dumping it.
Who had the horrible idea to paint that United 737 Max nosecone like that at 3:45
If I was Embraer I would run and run fast . Let's not forget that Boeing squeezed it subcontractors and suppliers where the hardly made any money .
If Embraer waits a year or three, then they can take over the ruins of Boeing
Maybe Embraer should buy Boeing.