Brazil requests Embraer to resume negotiations, insists on reducing its order for KC-390 aircraft to 15 units

RIO DE JANEIRO, BRAZIL – During the meeting of the head of the Brazilian Air Force (FAB), Lieutenant Brigadier Carlos de Almeida Baptista Jr., with different media, one of the main topics was the Embraer KC-390 transport aircraft and the controversy over the number of aircraft that will finally be acquired.

“What is currently contracted is 22 aircraft, but we already called Embraer to restart the process to reduce it to 15, which will only be done if it is consensual,” Baptista Jr. said. He added: “If they do not accept the reduction to 15, we will reduce another 5% of the contract value, which should mean reducing one more aircraft”.

The FAB chief is referring to the 5% that Brazil still has in its favor to modify the agreement with Embraer unilaterally: Brazilian law only allows contractual changes without consensus between the parties of up to 25% and the reduction from 28 to 22 aircraft – with the consequent reduction in the production rate to an annual minimum – already meant using 20% of that margin.

At the end of 2021, when the Air Force’s intention to reduce its original order for the KC-390 by almost half became known, Embraer did not hide its anger and even threatened legal action, even though, in an interview, the president of Embraer Defense and Security denied a dispute with the FAB.

Thus, much would have to have changed in the last seven months for the company to accept the modification initially requested by the Air Force. Against this backdrop, as of today, Brazil will most likely acquire 21 aircraft.

FIRST BATCH OF 15 AIRCRAFT

According to the FAB commander, the consensus of the High Command is that the number of 15 aircraft represents the financial capacity that the institution would have to receive the aircraft and still help Embraer keep the production line open.

In fact, according to Baptista Jr.’s statements, the Air Force sees this renegotiation of the KC-390 program as a new batch procurement plan, as is currently being negotiated for the Saab F-39 Gripen. “The Air Force wants to procure the KC-390 in batches, the first of 15 aircraft,” he said.

It is not happening without hurdles, the best known of which is the increased unit cost due to the small quantity of engines, avionics, and other systems that have to be procured from suppliers in time windows for deliveries that, once missed, greatly complicate production.

With information from InfoDefensa