Thursday 9 April 2015

LATEST!!! Embraer pushing new transport aircraft outside Brazil

The KC-390 transport plane made its maiden flight in February. © Reuters
SAO PAULO -- Embraer plans to strengthen its military division by expanding sales of midsize transport planes to the Middle East, Africa and Asia.

     The Brazilian aerospace company aims to capture demand in regions preparing for the rise of the Islamic State group, elbowing into a market dominated by U.S. and European defense contractors.
     Embraer is in negotiations with about 10 countries on the newly developed KC-390 transport plane, which has drawn much customer interest since its first flight in February, defense and security division chief Jackson Schneider told The Nikkei in an interview.
     The company aims to expand sales to all countries without their own defense industries, especially emerging economies with a growing urgency to respond to guerilla and drug organizations, Schneider said. Embraer executives met with representatives from 15 countries in February at an arms trade show in Abu Dhabi, he noted.
     The KC-390 was developed to replace the C-130 Hercules military transport aircraft made by U.S. aerospace company Lockheed Martin and now used by the Brazilian military. Embraer received 4.6 billion reais ($1.48 billion) in development funds from the military.  The first deliveries are slated for 2016.
     With a maximum payload of 26 tons and a top speed of 870kph, the aircraft can easily be switched between carrying troops and materials by altering the interior.
     Embraer has to date landed orders for 28 of the planes with a total value of 7.2 billion reais from the Brazilian air force. It has also received tentative orders for a total of 32 from Argentina, Chile, Colombia, Portugal and the Czech Republic.
     Embraer split off its military division in January 2011. The unit logged sales of $1.45 billion for 2014, up 22% on the year. It accounts for 23% of the group's total sales and is growing in importance.

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