During the second day of Embraer Media Day 2022, the company reported on the prospects for its defense products, and particular interest was aroused by the announcement that they are about to close a deal with a new industrial partner for the C-390.
Aviacionline is located in Gavião Peixoto, where Embraer’s defense portfolio products are manufactured. A briefing was held there by Jackson Schneider, CEO of Embraer Defense and Security, during which the outlook for the KC-390 for the future was discussed.
European region
First, Mr. Schneider reported that the Millennium was selected as a finalist in the Royal Netherlands Air Force’s (RNLAF) program to replace 4 aging C-130Hs, in which it competes with Lockheed Martin, which offers its well-known C-130J Super Hercules.
According to Embraer, they are optimistic about this competition because they claim that, on the one hand, they have a better product; and on the other hand, it would be a better deal for the Netherlands, as they offer a larger package of technological offsets and local production of components for future KC-390 orders.
To ensure local participation in an eventual contract with RNLAF, Embraer signed, in October 2021, a series of partnership agreements with Fokker Techniek and Fokker Services, which would also expand the global reach of the Brazilian manufacturer’s products, both in the military and commercial fields.
Latin America
Regarding the region, Aviacionline asked about the possibilities of Argentina joining as a future user of the KC-390 Millennium, to which Jackson Schneider commented:
«There is a signed LOI, but we understand that it is not the time for the FAA (Argentine Air Force) to transform it into firm orders.»
However, he then added:
«We are very happy with FAdeA and we aim for the Brazilian-Argentine integration to grow», regarding the work performed by the Argentine aerospace company FAdeA, as a subcontractor of the program.
Regarding the new reduction that the Brazilian Air Force (FAB) wants to make in the KC-390 order, for now the formal commitment with Embraer for 22 units is maintained, since the contract law allows the State to modify 25% of the amounts, up or down, without requiring legislative approval. This is what allowed the FAB to cut off 6 units from the 28 originally contracted.
See also: Fewer KC-390s and more Gripen for the Brazilian Air Force
In order for the FAB to change the contract and reduce the acquisition from the current 22 units to only 15, the modification of the original bidding would have to be approved by Congress.
Partner X
Embraer admits that it is in advanced talks with an industrial partner to expand the commercial range of its flagship product, the KC-390 Millennium.
«We are thinking of strategic partnerships that will open up markets for us,» they said.
For now, the Brazilian company is not ready to disclose who this mystery partner is, but they will be revealing it soon.
Could it be an American manufacturer like Northrop Grumman? Or perhaps the Boeing/Embraer relationship could get a second chance.
Another option that would open the Asia/Pacific market for Embraer could be Korea Aerospace Industries (KAI). The Asian giant plans to become the most important aerospace company in Asia, and to this end it is pushing an aggressive commercial campaign for its products, both in the local and international markets.
See also: South Korea to purchase new transport aircraft by 2026
Last year, KAI presented its concept for a medium military transport, which coincidentally (or not), would be in the same category and has a design very similar to Embraer’s KC-390.
Everything is open to speculation.
