RIO DE JANEIRO -- A Brazilian justice is allowing airplane manufacturers Boeing and Embraer to proceed with a joint venture, overruling a temporary injunction that stalled the deal.

The decision was made Saturday morning by Federal Court President Therezinha Cazerta, who said that the matter is outside the court's purview.

The $5.26 billion venture was stalled by Judge Victorio Giuzio Neto, who foiled the companies' intentions on another occasion earlier in the month.

Labour unions say that it's actually a sale and will move most of the business to the U.S.

Under the current terms, Boeing is to receive 80 per cent of the venture and Embraer the remaining 20 per cent. The subsidiary is expected to take on all of Embraer's commercial aviation activities.

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

Embraer is the third largest producer of civil aviation aircraft and produces a variety of business, military, and commercial planes for the Brazilian and international market.

Boeing is the world's largest aviation company and primarily has factories in the United States, where it is the largest exporter.

The tie-up between the two companies is seen by many as a response to a similar deal between Boeing competitor Airbus and Canadian aerospace manufacturer Bombardier.