Boeing-Embraer deal suspended by Brazilian judge

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A Lion Air Boeing 737 Max 8 crashed off the coast of Indonesia last October, and an Ethiopian Airlines Max 8 crashed this month near Addis Ababa. | AP Photo

RIO DE JANEIRO — A Brazilian judge has for the second time in a month stalled a $5.26 billion deal between airplane manufacturers Boeing and Embraer.

The temporary injunction issued Wednesday by Judge Victorio Giuzio Neto comes three days after the companies agreed to terms. A superior court overruled a similar decision by Neto only 10 days earlier.

Boeing is to receive 80 percent of the joint venture and Embraer the remaining 20 percent. The subsidiary is expected to take on all of Embraer’s commercial aviation activities.

Neto’s ruling follows a petition by labor unions.

The agreement between the two companies is championed by Embraer as necessary to keep the company competitive.

Workers organizations say that the joint-venture is, in fact, a sale and will move most of the business to the U.S.

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