Aviation
Military /
Brazil
malaise
FAB reduces amount of KC-390 it will purchase; Embraer studies legal measures
KC-390 Millenium
Image: FAB
Rafael Ramos
11/16/2021
Last Friday, November 12th, the FAB announced that the 2014 contract that provided for the acquisition of 28 Embraer KC-390 freighters, worth 7.2 billion reais, will be reduced to just 15 units. It is unclear, however, whether the contract value will also be lowered. However, the reduction in value seems to be the reason for the FAB's decision.
"Considering Embraer's decision and the impossibility of continuing to carry out the contract in the current quantities, the Brazilian Air Force, in order to safeguard the public interest, will initiate, within the limits provided for by law, the procedures for the unilateral reduction of contracts of production of the KC-390 aircraft, an unprecedented and undesirable fact in this important and fifty-year relationship”, said the FAB.
Read the full letter of Air Lieutenant Brigadier Carlos de Almeida Baptista Junior, Air Force Commander criticizing Embraer, which was published on the FAB website and is available on the external link below.
When justifying the reason for the unilateral decision, the FAB cited the resources annually made available to the agency. Embraer, in turn, said it will take the legally applicable measures, so that it must go to justice against the FAB.
"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", reads in Embraer's Note.
The freighter is capable of performing different types of missions, and a large purchase by the government would be essential to leverage sales in other countries. The plane has already been purchased by Portugal and Hungary, and also by NATO members, and is being offered to other countries.
The FAB, with budget restrictions imposed by the Jair Bolsonaro government, began negotiations with Embraer in April this year to change the contract. However, the deadline for the change had already passed on November 11th without the companies reaching a consensus. So far, four KC-390 units have been delivered to the FAB.
KC-390 being loaded
Image: FAB
Hyperlinks:
https://www.fab.mil.br/noticia...
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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