Brazil's Embraer aircraft wins U.S. Defense contract

SAO PAULO Fri Dec 30, 2011 9:20pm EST

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SAO PAULO (Reuters) - Brazilian planemaker Embraer (EMBR3.SA) will sell its A-29 Super Tucano aircraft to the U.S. Air Force, in a firm-fixed price delivery order contract worth $355 million, the company said in a statement late on Friday.

Twenty aircraft will be provided, as well as ground training devices to support pilot training and support for all maintenance and supply requirements for the aircraft and associated support equipment.

"We are committed to pursuing our U.S. investment strategy and to delivering the A-29 Super Tucano on schedule and within the budget," Luiz Carlos Aguiar, CEO of Embraer Defense and Security, said in the statement.

The aircraft will be supplied in partnership with U.S.-based Sierra Nevada Corporation (SNC) as the prime contractor, and will be used to conduct advanced flight training, aerial reconnaissance and light air support operations.

The A-29 Super Tucano was built for counterinsurgency missions and is currently used by five air forces and on order by others, Embraer said. (Reporting by Inae Riveras; Editing by Gary Hill)

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Comments (8)
Mikeusa1 wrote:
That plane could have been easy built here in the United States. Just goes to show you where their heart is at.

Dec 31, 2011 10:01am EST  --  Report as abuse
I would say diversification policy is a good policy instead of being dependent on a single firm at home or abroad. A manufacturer near home is better than thousand at distant places in time of need. The home one is there yet to have a reinforcement reserve is a better policy and cheap from costing analysis. Of course if the firm produces are of quality and superior.

Purchase contract must have been on critical analysis as it is of defense requirement and is of quality superiority.

Business with foreign companies are not made on flimsy conditions particularly on matters of defense purchases. I suppose the deal was struck rightly and cheap.

Jan 01, 2012 6:04am EST  --  Report as abuse
diplobull wrote:
Ya can’t design a plane or anything else with a room full of MBA’s.

Jan 01, 2012 2:55pm EST  --  Report as abuse
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