Brazil to Buy 28 Embraer Military Cargo Jets
KC-390 Planes Will Be Delivered Over a Period of 10 Years
May 20, 2014 2:57 p.m. ET



GAVIAO PEIXOTO, Brazil—The Brazilian air force plans to acquire 28 military cargo jets from aircraft manufacturer Embraer SA worth 7.2 billion Brazilian reais ($3.27 billion), the company said Tuesday.

The KC-390 planes will be delivered over a period of 10 years, with the first delivery scheduled for the end of 2016.

Brazilian President Dilma Rousseff attended the inauguration of the hangar where Embraer will perform final assembly on the KC-390, a medium-size, twin-engine transport aircraft that will compete with Lockheed Martin's C-130 Hercules.

She said the defense sector is strategically important for Brazil's development.

"This country more and more needs technological innovation," she said. "The defense industry has an extraordinary potential for technological advances."

Embraer projects that military sales will account for 20% of company revenue this year.

Jackson Schneider, chief executive of the company's defense arm, Embraer Defesa e Segurança, said Embraer sees healthy demand for military transport aircraft. Mr. Schneider projected that as many as 728 such planes will be needed world-wide over the next 20 years, and that Embraer hopes to capture 15% to 20% of that market with the new KC-390.

Mr. Schneider also said the company has intention letters to sell 32 KC-390s to countries including Chile, Argentina, Portugal and Colombia. He said Embraer is in talks with other countries as well but declined to name them.

The Brazilian contract still needs final approval by military authorities, which is expected within 90 days. In addition to planes, it provides for supplying a logistical support package, which includes spare parts and maintenance, Embraer said.




http://online.wsj.com/news/articles/...74012675893286

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Apakah TNI-AU tertarik membeli KC-390?? .............................