Brazil’s Embraer eyes bigger defense role

April 15, 2013

Laura Bonilla – AFP/Defense News, 04/14/2013

Embraer, the world’s third largest commercial aircraft maker, wants to boost its presence in the lucrative defense sector, with strong support from Brazil’s government.

The company aims to increase its sales in the sector by 25 percent this year, Luiz Carlos Aguiar, president of Embraer’s defense and security unit, said on the sidelines of this week’s LAAD Defense and Security expo here.

Between 2006 and 2012, Embraer’s defense activities expanded by an average of 29 percent annually to represent 17 percent of total sales, up from six percent.

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Brazil’s Embraer looks to shock Lockheed with price of cargo jet

April 9, 2013

Brad Haynes – Fox Business/Reuters, 04/09/2013

Brazilian planemaker Embraer SA is looking to shock rivals with the price of its KC-390 military transport plane when it starts booking firm orders within the next 12 months, according to a senior executive.

Luiz Carlos Aguiar, the head of Embraer’s defense unit, made clear in an interview ahead of the LAAD defense show that starts in Rio de Janeiro on Tuesday, that the company’s strategy was aggressive.

“In terms of price, we’re going to make the competition uncomfortable. They’re going to be astonished,” he said, but declined to be more specific on the price of the cargo jet under development, citing various options that will affect costs.

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Embraer, state and local officials gather for ribbon-cutting ceremony for Super Tucano assembly facility

March 27, 2013

Embraer, 03/26/2013

Embraer President and CEO Frederico Curado, joined by Florida Governor Rick Scott, Jacksonville Mayor Alvin Brown and Representatives Corrine Brown and Ander Crenshaw, today marked the opening of the facility where the company will assemble the aircraft for the U.S. Air Force’s Light Air Support (LAS) program. More than 200 local business people, public officials and news media attended the ribbon cutting ceremony at the 40,000-square-foot hangar at Jacksonville International Airport. Through the LAS program, Embraer and its prime contractor Sierra Nevada Corporation will support more than 1,400 jobs with over 100 companies throughout the United States.

“Today, we mark another achievement in Embraer’s growing presence in the United States and the State of Florida, not only with our expansion in Jacksonville, but also with our first
participation in a contract to supply high tech equipment and services to the USAF. We are honored by this opportunity and ready to get to work,” said Frederico Curado, Embraer S.A. President and CEO.

Embraer, with its U.S. headquarters in Ft. Lauderdale, currently employs more than 1,200 people in the United States. The Jacksonville site joins recent expansion of the company’s operations in Melbourne, Florida where, in 2011, it opened a production facility and Global Customer Center for its Phenom 100 and Phenom 300 executive jets. In 2012, the company broke ground in Melbourne for a new Engineering and Technology Center that will employ 200 engineers. “With this manufacturing facility, Embraer will create 50 new jobs for Jacksonville families, which is great news. Thanks to our business friendly strategy of keeping taxes low, making targeted investments and supporting education, these 50 new jobs will build on the more than 280,000 private sector jobs that have been created in the last two years,” said Florida Governor Rick Scott. “Jacksonville’s exceptionally talented workforce will be assembling the world’s most capable light air support aircraft with parts from suppliers across the United States. In terms of a ‘winwin’ it doesn’t get better than this,” said Congressman Ander Crenshaw (R-FL), who represents Florida’s 4th congressional district. “At a time when many companies are outsourcing, Embraer is in sourcing and creating high quality jobs right here in Northeast Florida; I commend them for this action,” said Congresswoman Corrine Brown (D-FL), who represents Florida’s 5th congressional district.

With the support of the State of Florida, the City of Jacksonville and the Jacksonville Airport  Authority, efforts already have begun to prepare the facility for industrial operations.
“Embraer’s success in Jacksonville speaks volumes about the direction of our economy and our city’s role as one of America’s most military-friendly cities,” said Jacksonville Mayor
Alvin Brown. “This project promotes economic security at home and global security for all. I’m proud of the teamwork that helped to make it happen and I look forward to working with
Embraer for many years to come.” “I know many of the leaders at Embraer, and they have created an outstanding global aviation company in both the commercial and military business sectors,” said JAX Chamber interim president and CEO and JAXUSA Partnership president Jerry Mallot. “I am excited to be here today to celebrate the opening of an Embraer facility in Jacksonville and the creation of new jobs for our region.”

On Febuary 27, the U.S. Air Force awarded the LAS contract to Sierra Nevada Corporation  (SNC) to supply 20 Embraer A-29 Super Tucano aircraft, as well as ground-based training
devices, pilot and maintenance training, and logistical support. The initial 20 aircraft will be used to provide light air support, reconnaissance and training capabilities to the Afghanistan military. The facility in Jacksonville will perform pre-equipping, mechanical assembly, structural assembly, systems installation and testing, and flight testing of A-29 aircraft. Delivery of the first American-made A-29 Super Tucano aircraft is scheduled to take place next summer.

For more information about the Super Tucano, please visit: www.BuiltForTheMission.com.


Embraer signs lease on Super Tucano facility in Jacksonville

March 18, 2013

Daniel McCoy – Wichita Business Journal, 03/18/2013

Embraer has signed a 10-year lease on a 40,000-square-foot hangar in Jacksonville, Fla., where it will assemble A-29 Super Tucano aircraft built under the U.S. Air Force’s Light Air Support contract.

Brazil-based Embraer and its U.S. partner, Sierra Nevada Corp., beat out Wichita’s Beechcraft Corp. for a second time on the controversial contract last month. It’s initially for delivery of 20 planes to be used by the Afghan military and worth $427.5 million.

The contract continues to be controversial as the Pentagon has overridden a protest of the award by Beechcraft, thereby allowing Embraer to move forward on the program.

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In dispute, Brazil’s Embraer temporarily loses $427 Mln U.S. Air Force Gig

March 15, 2013

Kenneth Rapoza – Forbes, 03/15/2013

Brazilian aircraft manufacturer Embraer (ERJ) temporarily lost a nice, fat $427.5 million contract with the United States Airforce. It’s American rival Beechcraft is to blame due to a bid protest with the Government Accountability Office in Washington.

On Feb. 27, and after years of trying, Embraer finally won the hearts of the Defense Department when it awarded them a half billion dollar order to build 20 Super Tucano aircraft. It’s their second time trying.  Beechcraft road blocked them again last year. This is Beechcraft’s second time using the GAO to make life difficult for the Brazilian aircraft manufacturer, one of the top three in the world.

The Super Tucano looks like something out of World War II. The turboprop is used in counter-insurgency fights and as a light attack vehicle and reconnaissance aircraft that is built for various speeds. Embraer’s Super Tucano, also known as the A-29, was to be deployed to help the military in Afghanistan.

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Analysis: U.S. deal has Brazil’s Embraer flying high in defense

March 1, 2013

Brad Haynes – Reuters, 03/01/2013

With its first-ever U.S. military contract in hand, the defense unit of Brazilian planemaker Embraer SA (ERJ.N) has finally hit the big time, establishing itself as a global player while the rest of the industry struggles with shrinking budgets.

The light attack plane that Embraer will supply for the United States in Afghanistan handily illustrates how the company, which is best known for the regional jets it supplies to airlines such as JetBlue Airways Corp (JBLU.O), is climbing the ranks of the world’s top 100 arms dealers.

A rugged design and low cost make Embraer’s Super Tucano popular in counterinsurgency missions from Africa to South Asia, where resource wealth has spurred new defense spending amid austerity in Europe and the United States.

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Embraer wins U.S. Air Force deal for Afghan planes

February 28, 2013

Jim Wolf and Brad Haynes – Reuters, 02/27/2013

Brazil’s Embraer SA (EMBR3.SA) won a U.S. Air Force deal on Wednesday to supply 20 light attack planes for counterinsurgency missions in Afghanistan, tightening U.S.-Brazilian defense ties after a politically charged bidding process.

Embraer and its privately held partner, Sierra Nevada, beat out U.S.-based Hawker Beechcraft for the $428 million deal, the Brazilian planemaker’s first with the U.S. armed forces.

With the “seal of quality” from the world’s biggest defense spender, the head of Embraer’s defense unit Carlos Aguiar said he anticipated more demand for the single-engine turboprop Super Tucano from potential clients in the Middle East and Southeast Asia.

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Republic Airways buys 47 passenger jets from Brazil planemaker Embraer

January 25, 2013

AP/Fox News, 01/25/2013

Brazilian planemaker Embraer says it has signed a contract with Republic Airways Holdings Inc. for the sale of 47 E-175 passenger jets for an estimated US$2 billion.

Embraer says in a Thursday statement that the agreement includes options for an additional 47 aircraft, which would bring the total value of the deal to approximately US$4 billion.

The statement says deliveries of the 76-seat aircraft are expected to begin in mid-2013.

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Brazil signs deal to manufacture ‘copters

January 22, 2013

UPI, 01/21/2013

Brazilian aircraft maker Embraer is teaming with Anglo-Italian helicopter designer and manufacturer AgustaWestland to start a production and assembly line in Brazil.

Embraer’s new deal signaled the Brazilian defense manufacturer’s expansion into a market that has been dominated by North American and European manufacturers.

Embraer’s plans for entering the helicopter market, reported in 2012, generated speculation about potential partners.

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Brazil’s Embraer confirms Pratt for regional planes’ engines

January 9, 2013

Rogerio Jelmayer – Fox Business/Dow Jones Newswires, 01/08/2013

Brazilian aircraft manufacturer Embraer SA (ERJ, EMBR3.BR) has selected Pratt & Whitney’s new geared turbofan engine for its updated E-Jet line of regional planes, ahead of alternatives offered by General Electric Co. (GE) and Rolls Royce Group PLC, a senior company executive said on Tuesday.

The new engines will be used in a modernized version of the E-Jet family, with aircraft of between 70 and 120 seats, the first of which will be delivered in 2018, said Paulo Cesar Souza e Silva, head of commercial aviation at Embraer, in a telephone interview.

The win by Pratt displaces incumbent GE Aviation, which has delivered more than 2,000 engines on Embraer’s current family of regional jets.

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