Definitive Number of Aircraft Now Stands at 19

On 21 October, Embraer announced it has reached agreement with the Força Aérea Brasileira (FAB – Brazilian Air Force) regarding the number of KC-390 Millennium aircraft to be delivered to the force.

In 2014, a contract was signed between the Brazilian government and Embraer for 28 aircraft, stipulating a quantitative limit of 25% to any modification in numbers without the agreement of both parties. The government then tried to reduce the number of platforms to a total of 15, resulting in an intense series of negotiations.

The net result now appears to be an agreement to settle on 19 as the final number of aircraft to be delivered, definitively ending any possibility of unilateral reductions. What remains to be achieved is a cohesive redefinition and rescheduling of the delivery process in order to mitigate the effects of the reduction in numbers and an adjustment of the relevant contractual clauses to maintain an equitable economic and financial balance. According to Embraer, the agreement preserves the company’s cashflow, ensures the economic and financial viability of the programme and has no material effect on the company’s guidance regarding its performance in 2022.

The KC-390 has also been ordered by the air forces of Portugal and Hungary, and a sale to the Netherlands is in the process of negotiation.

Santiago Rivas in Buenos Aires for MON