Embraer anticipates additional defence aircraft contracts in the Middle East following a significant order for C-390 military planes from the United Arab Emirates. The UAE order is the twelfth nation to select the C-390.
Pipeline of Deals Scheduled
Bosco da Costa Junior, Embraer’s Defense Chief, told Reuters the deal for up to 20 C-390 military cargo aircraft with the UAE… positions the Brazilian plane maker for more sales to its allies.
“The Middle East is a strategic region for us,” Junior said, adding Embraer has been promoting the C-390 and the Super Tucano light attack aircraft in the region.
Embraer is actively marketing the C-390 and its Super Tucano light attack aircraft within this market. The defence chief characterised the UAE contract as “differentiated,” marking the first instance of the C-390 being acquired by a Middle Eastern buyer.
Pooled Sovereignty
Industry insiders suggest that the inclusion of options in the contract may lead to government-to-government procurement mechanisms.
“I believe we will see here government-to-government mechanisms … with one nation facilitating the entry of other nations into the C-390 operators’ club,” the Defence Chief added, declining to name potential buyers.
Previous sales of the C-390 in Europe benefitted from similar arrangements, with Sweden joining an agreement initiated by the Netherlands and Portugal allowing for purchase options on behalf of other NATO members.
Embraer’s shares experienced a 2.5% increase upon the announcement. Analysts from Itau BBA estimated that the firm order could be valued at approximately $1B.
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