Embraer [NYSE: ERJ; BOVESPA: EMBR3] and Boeing [NYSE: BA] are partnering on the sales and marketing of Embraer’s KC-390 – a multi-mission mobility and aerial refueling aircraft with advanced capabilities in the medium-sized airlift market.
Under the agreement, Boeing is the lead for KC-390 sales, sustainment and training opportunities in the U.S., UK and select Middle East markets. Embraer will manufacture the aircraft and collaborate on sales, sustainment and training.
“The KC-390 is an extremely capable aircraft that continues to attract interest by several nations, and Boeing’s military transport expertise is ideal for teaming in the international market,” said Luiz Carlos Aguiar, President and CEO of Embraer Defesa & Segurança. “This agreement strengthens the level of cooperation between both companies and the defense industries of Brazil and the United States.”
The KC-390 originated as a defense project contracted by the Brazilian Air Force in 2009. The largest aircraft to be manufactured in Brazil, it features advanced capabilities in terms of performance, cargo, capacity, flexibility and life-cycle costs. Initial estimates of the potential market for KC-390 are approximately 700 aircraft, but that number is likely to increase after additional markets are analyzed. The project has completed the Critical Design Review and is on schedule.
Today’s announcement builds upon the broad cooperation agreement Boeing and Embraer signed in 2012. The companies are collaborating on aircraft efficiency and safety, research and technology, defense products and sustainable aviation biofuels.
“Our relationship with Embraer continues to grow across Boeing and demonstrates our commitment to Brazil,” Boeing Defense, Space & Security Business Development and Strategy Vice President Chris Raymond said today at the Paris Air Show. “KC-390 complements our mobility portfolio by providing a versatile, affordable aircraft.”
Source: Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)
Date: Jun 18, 2013