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Boeing, Embraer scrap $4.2 billion deal as jetliner market shrinks

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Boeing Co. is walking away from its proposed $4.2 billion combination with Embraer SA’s commercial-aircraft business, ending years of talks, as the planemakers brace for a far smaller jetliner market after the coronavirus pandemic.

The deal’s collapse turns two long-time business partners into competitors and strengthens Airbus SE’s long-term advantage in the lucrative market for single-aisle planes.

The partnership with Brazil’s Embraer would have armed the U.S. aerospace giant with smaller jets to compete against a new offering from Airbus.

Boeing is abandoning the proposed tie-up weeks after Chief Executive Officer Dave Calhoun warned employees that the company would need to adjust to a “new reality" as travel demand vanishes because of

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