The Brazilian Air Force (FAB) and Embraer negotiated a reduction in the KC-390 Millennium order from 22 to 19 units.
Embraer issued a press release confirming the reduction of the FAB’s order by 3 aircraft, from the 22 units agreed in the previous contract renegotiation to 19 aircraft.
See also: Fewer KC-390s and more Gripen for the Brazilian Air Force
The Brazilian aerospace company reports that the execution of the amendments successfully concludes the negotiations between the parties in relation to the Contracts.
The terms of the contract between FAB and Embraer will be amended to reflect the aforementioned reduction of firm orders. It was also agreed to definitively end the possibility of unilateral reductions (by the Brazilian Air Force) of units, to redefine and reschedule the delivery schedule, in order to distribute over time the effect of the reduction in the number of aircraft. At the same time, the contractual clauses will be adjusted in order to maintain the respective economic and financial balance of the KC-390 program.
The contract modifications preserve the Company’s cash flow, ensuring the economic and financial viability of the KC-390 Millennium project and do not change or compromise the Company’s guidance for 2022.
See also: Agile Tanker: Embraer and L3 Harris to develop version of KC-390 for USAF
Embraer reinforces its commitment to the KC-390/C-390 Millennium project, a 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 selected by three European countries (Portugal, Hungary and the Netherlands).
