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November 15, 2021

Brazilian Air Force unilaterally cuts KC-390 contract values by 25%

The FAB has reduced its total order for 28 KC-390 military cargo aircraft to 15.

The Brazilian Air Force (FAB) has unilaterally reduced the service’s planned spending on the Embraer KC-390 airlifter by 25%.

The service reduced the procurement of KC-390 military cargo aircraft from a total of 28 to 15 units, which is more than 25% down from the actual contract.

The FAB said the decision was taken following the non-acceptance of the airforce’s proposal by the company to reduce the amount that it initially contracted in 2014 and to safeguard the public interest.

Talks with the company were initiated in April this year and concluded on 11 November.

In a statement, Embraer executive vice-president and CFO Antonio Carlos Garcia said: “As soon as it is formally notified by the federal government, the company will seek legal measures relating to the economic and financial rebalancing of the contracts, as well as evaluating the effects of the reduction of the contracts on its business and results.

“Embraer reinforces its commitment to the KC-390/C-390 Millennium project, the new generation multi-mission aircraft, as well as its belief in the export potential of this product, which brings unique innovations in its category and which has already been acquired by two European nations.

“Finally, Embraer reiterates its role as a strategic partner of the Brazilian Air Force in the development and implementation of high added value technological solutions and products, a partnership established for over 50 years.”

The existing KC-390 fleet with the FAB currently includes four aircraft. The fleet has so far surpassed more than 4,100 operational flight hours.

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