How Brazil's Embraer turned its fortunes around

When Covid hit Brazil two years ago, the outlook for airplane manufacturer Embraer was bleak. The company that was once considered the crown jewel of Brazilian industry had reached an agreement in 2019 to sell its profitable commercial aviation division to Boeing, leaving uncertainty hanging over the future of its defense and executive jet divisions. In early 2020, airplanes worldwide were grounded as the coronavirus spread across the world, casting a cloud over the aviation industry globally. 

Then, in April 2020, Boeing unilaterally pulled out of the USD 4.2 billion merger, accusing Embraer of having failed to meet contractual obligations. (The Brazilian manufacturer rejected such claims and filed a lawsuit in the U.S. seeking compensation.)