The Brazilian Air Force said the planned purchase of 28 KC-390s exceeded “budget reality” as military budgets have been restricted.
Brian Everstine
Credit: KC-390: Embraer
The Brazilian Air Force is unilaterally cutting its planned spending on the Embraer KC-390 airlifter by 25 percent, blaming the COVID-19 pandemic and failed negotiations with the company.
In a lengthy statement, Brazilian Air Force Commander Air Lieutenant Brigadier Carlos de Almeida Baptista Jr. praised Embraer for its past relationship with the service but said “complex” negotiations that began in April ended with Embraer rejecting a proposal to cut the number of aircraft from 28 to 15.
“Considering Embraer’s decision and the impossibility of continuing to carry out the contract in current quantities, the Brazilian Air Force, in order to safeguard the public interest, will initiate, within the limits established by law, the procedures for the unilateral reduction of contracts for the production of the KC-390 aircraft, an unprecedented and undesirable fact in this important and fifty-year relationship,” he said, according to a translation of the statement.
Embraer Executive Vice President of Finance Antonio Carlos Garcia, in a statement to shareholders, said the company was made aware of the decision on Nov. 12. The cuts will amount to a 25% reduction in the total value of the contracts as signed in 2014 and Embraer is seeking a legal response.
Garcia said Embraer is committed to the KC-390/C-390 Millennium project, and additional exports of the aircraft. Two European nations, Portugal and Hungary, have ordered the aircraft. The first Portuguese KC-390 was powered on for the first time in September, and deliveries are expected to begin in 2023.
In May, the Brazilian Air Force said the planned purchase of 28 KC-390s exceeded “budget reality” as military budgets have been restricted.
The Brazilian Air Force in 2008 committed to the KC-390 after evaluating the market for C-130-class airlifters, with a commitment of more than BRL 11 billion ($2 billion) for its development, Baptista said.
Four KC-390s have been delivered and are a “versatile, reliable product” that meets requirements, he said. Embraer planned to deliver the 28 KC-390s by the end of 2024.
The airlifter is the largest produced by Embraer and is powered by two International Aero Engines V2500-E5s.
