Austria, Embraer discussing C-390 purchase at Rio defense fair -sources

By Gabriel Araujo

RIO DE JANEIRO (Reuters) – Austria is looking to advance in talks with Brazilian planemaker Embraer SA at the LAAD defense and security fair on purchasing four or five KC-390 military cargo aircraft, two sources familiar with the matter said on Wednesday.

The move is part of the Embraer Defense unit’s goal to expand its foreign revenue share this year, focusing on foreign sales of the C-390 Millennium – as the jet-engine transport plane is also known – as reported by Reuters this year.

Austria participated in a meeting of KC-390 users last month in Portugal. Hungary, which already bought the plane, the Netherlands, which has selected the plane to renew its fleet, and the Czech Republic also attended the meeting.

An Austrian delegation traveled to Brazil for LAAD, and one of the people said further talks regarding the KC-390 were on their agenda, although a final decision on a purchase was still to be made.

The Austrian government did not immediately respond to a request for comment sent outside business hours.

Austria is looking to renew its fleet of Lockheed Martin’s Hercules C-130s. The country announced it would procure four to five aircraft for contract signing in the first half of 2024, with delivery no later than 2030.

“The KC-390 is being looked at and there is mutual interest,” a second industry source said on Wednesday.

The news comes as Embraer on Tuesday signed a memorandum of understanding with Sweden’s Saab to position the KC-390 as the preferred solution for the Swedish Air Force’s tactical air transport requirements and to pursue new business opportunities.

“There are talks with several countries,” Embraer Defense CEO Bosco da Costa Junior told Reuters on the sidelines of LAAD. He did not specify countries, but noted it was public that Austria and the Czech Republic had recently participated in a meeting of KC-390 users.

The company on Wednesday also launched the A-29 Super Tucano light attack aircraft with a NATO configuration, initially focusing on meeting the needs of European nations, according to a statement.

(Reporting by Gabriel Araujo; Editing by Josie Kao)