Aviation
Embraer delivers 17 Commercial and 27 Executive Jets in 3Q19
São José dos Campos, Brazil, October 31, 2019 – Embraer (NYSE: ERJ; B3: EMBR3;) delivered a total of 44 jets in the third quarter of 2019 (3Q19), of which 17 were commercial aircraft and 27 were executive jets (15 light and 12 large). As of September 30th, the firm order backlog totaled USD 16.2 billion.
In the beginning of 3Q19, Embraer signed a contract with SkyWest, Inc. for a firm order of seven E175 jets in a 70-seat configuration. SkyWest will operate the aircraft for Delta. The order has a value of USD 340 million, based on 2019 list prices, and was already included in Embraer’s 2019 second-quarter backlog as an “undisclosed” customer. Deliveries are expected to begin in the fourth quarter of 2019.
In the third quarter, Embraer also delivered its first E195-E2, the largest of the three members of the E-Jets E2 family of commercial aircraft. The recipients were AerCap, the world’s largest aircraft leasing company, and Azul Linhas Aéreas Brasileiras. Azul is the global launch operator for the E195-E2 and had placed firm orders for 51 of the type. The airline will receive another five aircraft in 2019.
In the Executive Jets segment, Embraer announced a purchase agreement with Flexjet, a global leader in private jet travel, for a fleet of Praetor 500, Praetor 600 and Phenom 300 jets. The announcement was made during the 2019 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE), in Las Vegas, Nevada. Valued at up to USD 1.4 billion, at current list prices, this deal was included in the 2019 second quarter backlog, with deliveries starting in the fourth quarter of 2019.
Also, the new Praetor 500 midsize business jet was granted the Type Certificate from three regulatory authorities: ANAC, the Brazilian Civil Aviation Agency (Agência Nacional de Aviação Civil); the FAA (U.S. Federal Aviation Administration), and EASA (European Aviation Safety Agency). Embraer has already received orders for the Praetor 500, including in Brazil. Also, Embraer delivered a Praetor 600 to its first Brazilian customer in 3Q19. In the Defense & Security segment, the Portuguese Government announced a firm order of five multi-mission Embraer KC-390 airlifters, representing the entry of the aircraft into the international market. The contract, which was signed at Embraer’s facility in Évora, Portugal, also includes services and support and a flight simulator as part of the process to modernize Portuguese Air Force capabilities to support national Armed Forces operations and increase readiness in missions of public interest. Deliveries are scheduled to start in 2023. This contract will be included in Embraer’s backlog in the fourth quarter of 2019.
Aviation
Tejas and C-390 Millennium: India and Brazil’s Defense Trade Vision
India and Brazil are exploring a mutually beneficial deal to enhance their defense product exports. There are indications that this potential agreement could include the exchange of fighter jets, essentially functioning as a barter system. For example, India has a long-standing offset policy requiring foreign defense companies to reinvest a portion of their contract value back into India through technology transfer or other reciprocal benefits.
Many countries engage in such exchanges to support each other’s defense industries, thereby strengthening national policies and economies. A notable example is the barter deal between South Korea and Indonesia, where South Korea sold its T-50 jets to Indonesia in return for defense-related goods and trade advantages.
India-Brazil defence mutual benefits
If the India-Brazil deal comes to fruition, it could provide mutual benefits, as both nations are in need of advanced platforms. Brazil is well-known for its Embraer aircraft, which ranks as one of the top three manufacturers of private and commercial jets. However, Brazil lacks expertise in fighter jet production, and this deal could provide the exposure needed to enter the fighter jet market.
In 2014, Brazil made a significant purchase of 36 Gripen fighters, with deliveries expected by 2027. Brazil is also producing Gripen fighter jets at its Embraer plant, with SAAB and Embraer collaborating to enhance the performance of the Gripen aircraft further.
India Faces Shortage of Military Aircraft Materials
Currently, India faces a shortage of medium military transport aircraft and is seeking to acquire more. The C-130J and C-17 Globemaster, along with the Russian IL-76, are currently in service. However, the production of the C-17 has been halted, making it unavailable in the market, while the IL-76 is experiencing maintenance challenges due to a shortage of spare parts.
Air India Might Operate Tata-Made New Airbus C295 Aircraft
India is currently seeking a reliable partner for military transport aircraft, and the Embraer C-390 Millennium stands out as an ideal fit. If a deal between Brazil and India materializes, it could yield significant benefits for both nations.
Embraer C390 payload capacity
The Brazilian Air Force is the largest in the Southern Hemisphere and the second largest in the Americas. Embraer proudly presents the C-390 Millennium as the future of military transport aircraft, featuring a payload capacity of 26,000 kg. This makes it a compelling choice, especially since it outperforms the C-130J Super Hercules, which has a payload capacity of 19,000 kg. Given India’s interest in enhancing its military capabilities, it’s clear why experts believe that discussions around this aircraft could lead to a significant agreement.
This international airline is offering free flight tickets to Indian travelers
Brazil operates the Gripen E fighter jet, which is expected to expand its fleet in the near future. However, the Tejas fighter jet has certain advantages over the Gripen. For instance, the Tejas features a quadruple digital fly-by-wire system that offers greater redundancy and safety compared to the single FBW system in the Gripen. Additionally, its use of composite materials reduces its radar cross-section, and its wide duct air intake enhances performance. Notably, the Tejas can take off in as little as 460 meters, significantly shorter than the Gripen’s 800-meter requirement.
Tejas and Gripen E Engine
Both jets are equipped with advanced avionics and electronic warfare systems, but the Gripen does hold some advantages with its more powerful GE F414 engine. The Gripen has a better payload capacity and maximum takeoff weight, and the optimized F414 engine provides superior thrust, enhancing agility and aerial engagement capabilities. However, the F404 engine of the Tejas is cheaper to maintain and operate compared to the F414.
With a maximum capacity of 26 tonnes, the C-390 surpasses the C-130’s 19-tonne capacity. Additionally, the C-390 is equipped with both probe and drogue systems, allowing it to refuel fighter jets and even serve as a tanker—capabilities that the C-130J does not offer. If India and Brazil decide to collaborate on the C-390’s production, it could be a game-changer for both nations.
India could potentially modify the C-390 aircraft for combat roles, such as launching long-range subsonic cruise missiles. This adaptation is feasible, as evidenced by the U.S. using its MC-130 to launch AGM-158 missiles.
India’s collbration with TATA & Airbus C295
Currently, India, in collaboration with Airbus, is producing around 56 aircraft for defense purposes. This milestone strengthens India’s defense capabilities, as spare parts will be more accessible due to local production and support. The C295 aircraft plays a crucial role in boosting regional connectivity and transporting troops and essential military supplies.
Furthermore, the C-390 could function as a drone mothership for deploying India’s swift and stealthy drones, providing a cost-effective solution that maximizes operational capabilities. However, challenges related to self-survivability, precision strikes, and operations in contested environments need to be addressed. If these challenges can be resolved, this concept could significantly enhance India’s long-range strike capabilities.
Similarly, manufacturing the Tejas MK1 in collaboration with Brazil would bring substantial benefits, especially for Brazil. Their mutual membership in BRICS could foster deep cooperation, defense technology sharing, and industrial development. By partnering on the Tejas program, Brazil’s aerospace industry could enter the fighter aircraft segment, leading to advancements in knowledge transfer and the establishment of local supply chains.
Reducing reliance on India for fighter maintenance and support, the C-390 Millennium would significantly enhance India’s logistical and operational capacity. Meanwhile, the Tejas MK1A offers Brazil an affordable yet effective solution to bolster its air combat capabilities, further deepening the strategic ties between the two nations.
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