brar_w wrote:It is in Embraer's and Brazil's best interest to find a partner that can help alleviate some of the structural problems that exist with its commercial business and with its product portfolio in general. This is why the deal with Boeing was so good for the company even though their cultures were a world apart. I'm not sure how an acquisition stake by HAL works to help this. In fact, I don't see it helping Embraer in any way other than just direct injection of cash in exchange for equity. If Boeing re-starts is prior talks with Mitsubishi, as is being rumored, then that could further devalue Embraer's commercial business and make any potential deal less attractive for both parties. Its tough to see Brazil agreeing to a JV or a straight up acquisition of Embraer unless the partner presents a clear path for the company to succeed or at least be better off on the commercial side.
having said that, not all problems needs to have straight line solution.
We are shouting all time about monopoly of HAL in domestic aerospace market & private sector not getting any meaningful encouragement & support (confirmed order of substantial quantity to invest and run an assy. line).
Embraer issue needs not to given to HAL's to solve (means govt funding directly to HAL for going for a partial kill at Embraer). A willing private entity (like Tata Aerospace) may be encouraged to go for it, a specific model (which suits Civilian MTA & Military role with appropriate modifications and certifications) to get from Embraer at bargain price. TOT, manufacturing licence and IP for desh specific changes made.
Govt can say we assure you X number of Military orders (IAF+IA+ IN+ CG etc) in next 10 years
Financial help to the willing private entity can be extended through long duration ultra cheap loan through SPV constructed for this task.
Where is a will , there is a way out.
Point is that acquisition a stake or right of specific model(s) from Embraer by an Indian entity does gives up some advantage in terms of saving time and going totally from drawing board stage to production of TD version or Prototype version.
For cryogenic engine from Russia, even after US sanction we did took lots of innovate ways to get some part of the design documents. Why ??? Because we desperately believed we need it for our space program to progress.
Same philosophy applies here.