Story ID: 
Saab Seeks Assurances on Potential Embraer-Boeing Combination
By: Chris Pocock
Caption: The Swedish company wants to protect the technology of Gripen E/F fighter being co-developed with Brazil.
Word Count: 283
Saab president Hakan Buskhe traveled to Brazil last week to express the Swedish company’s concern about a possible combination of Embraer with Boeing. Saab has developed a close relationship with Embraer Defence and Security, which will be producing the Gripen E fighter for the Brazilian air force (FAB), and is co-developing the Gripen F two-seat trainer version. Buskhe met with Brazilian defense minister Raul Jungmann and received some assurances, according to Brazilian media.

The Gripen competes with Boeing’s F/A-18 Super Hornet, which was a losing contender in the FAB’s evaluation of new fighters. Buskhe told Jungmann that the transfer of technology from Saab to Embraer is the largest ever made by the company, according to Brazilian newspaper O Estado. Jungmann agreed to inform the Swedish company about any progress in negotiations between Embraer and Boeing, the newspaper reported. The Brazilian government holds a “golden share” in Embraer that allows it to veto strategic decisions the company makes.

Boeing has not made a formal offer for Embraer, which makes regional and business jets, as well as military aircraft. But such an offer might have to exclude Embraer Defence and Space, according to sources in the South American country. Alternatively, Boeing might agree to "ring fence" the partnership between Embraer and Saab, the sources added.

Before the FAB made its choice of the Gripen, Boeing offered various sweeteners to the country, including a deal to market the Embraer KC-390 tanker-transport to the U.S. and other air forces.  

Ironically, Saab and Boeing have been cooperating to offer a new design for the U.S. Air Force T-X advanced jet trainer requirement.