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In severe blow to Embraer, Brazilian Air Force will reduce order for the KC-390 - Air Data News
The Brazilian Air Force (FAB) announced on Wednesday a surprising decision to cut the order for 28 KC-390 Millennium airlifter jets.
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Ouch. I wonder where the funds cut from the C-390 Millennium program will be going? Are they being diverted to the new provisionally titled Project KC-X3 program, or something else entirely?The rate of delivery of two military transport jets per year suggests that the Air Force is expected to receive less than 20 aircraft in the future.
Somehow I am sceptical that is the reason behind this.I guess that the decision will simply help in restricting the debt burden?
I hadn't seen the last part of your post.Ouch. I wonder where the funds cut from the C-390 Millennium program will be going? Are they being diverted to the new provisionally titled Project KC-X3 program, or something else entirely?The rate of delivery of two military transport jets per year suggests that the Air Force is expected to receive less than 20 aircraft in the future.
Brazil is running out of money. Things were bad, but slowly getting better before COVID. With COVID on the scene... deficit for April 2020 alone was bigger than for the entire 2019 year(IIRC, we had a R$ 90bi deficit in 2019, and a R$ 100bi one for April 2020).Ouch. I wonder where the funds cut from the C-390 Millennium program will be going? Are they being diverted to the new provisionally titled Project KC-X3 program, or something else entirely?The rate of delivery of two military transport jets per year suggests that the Air Force is expected to receive less than 20 aircraft in the future.
Sad for them they missed buying those A340 that France sold at an incredible low price (if you can call it a price).
Brazil’s GDP surges back to pre-pandemic levels | Financial Times
Brazil’s gross domestic product expanded faster than expected in the first quarter, bringing Latin America’s largest economy back to where it was before the pandemic struck at the end of 2019.
Official data released on Tuesday showed that the economy grew 1.2 per cent from the previous quarter, when it expanded 3.2 per cent. Compared with the same quarter last year, the economy grew 1 per cent.
“The growth was quite surprising if you think that a little less than a month ago most economists believed that there was going to be a fall. This will spur hopes of a faster recovery for Brazil,” said Gustavo Cruz, a strategist at RB Investimentos.
Following the stronger than expected results — which analysts attributed to the country’s booming agricultural sector, an uptick in fixed investment and looser sanitary restrictions — several economists said they were revising their forecasts for annual growth upward to 4 per cent, from about 3 per cent currently.
Yes, GDP is currently doing well(may not continue doing so - we may have a power crisis this year). Biggest problem in this case is deficit, though - money is short right now. Still two years of strong growth may give enough breathing room to go back to 28 KC-390s. Time will tell.On an ironic note though:
Brazil’s GDP surges back to pre-pandemic levels (ft.com, registration or subscription may be required)
Brazil’s GDP surges back to pre-pandemic levels | Financial Times
Brazil’s gross domestic product expanded faster than expected in the first quarter, bringing Latin America’s largest economy back to where it was before the pandemic struck at the end of 2019.
Official data released on Tuesday showed that the economy grew 1.2 per cent from the previous quarter, when it expanded 3.2 per cent. Compared with the same quarter last year, the economy grew 1 per cent.
“The growth was quite surprising if you think that a little less than a month ago most economists believed that there was going to be a fall. This will spur hopes of a faster recovery for Brazil,” said Gustavo Cruz, a strategist at RB Investimentos.
Following the stronger than expected results — which analysts attributed to the country’s booming agricultural sector, an uptick in fixed investment and looser sanitary restrictions — several economists said they were revising their forecasts for annual growth upward to 4 per cent, from about 3 per cent currently.
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Embraer shares drop as Brazilian Air Force cuts KC-390 order
Shares of Brazilian planemaker Embraer SA fell by more than 8% on Friday after the Brazilian Air Force announced it would unilaterally cut to 15 aircraft its order for 28 KC-390 military cargo planes.www.reuters.com
They may order more in the future, but I'm far less optimistic of future economic conditions getting better any time soon than I was last time I posted in this thread(I don't think it's likely that Brazil will recover until the end of the decade). Speaking of last time I posted, someone was asking where would the funding saved in buying less KC-390s go. I can now answer this: Gripen. The Brazilian Air Force is cutting KC-390 numbers to guarantee they'll have at least 36 Gripens.![]()
Embraer shares drop as Brazilian Air Force cuts KC-390 order
Shares of Brazilian planemaker Embraer SA fell by more than 8% on Friday after the Brazilian Air Force announced it would unilaterally cut to 15 aircraft its order for 28 KC-390 military cargo planes.www.reuters.com
Ouch. But considering how badly Brazil's economy got battered by the pandemic this was inevitable. But I firmly believe that once economic conditions improve, they will order a few more aircraft.
We have also heard of US Army freefall instructors getting "bent" while doing a hlf-dozen jumps per day from above 20,000 feet.
Even if they did (which I highly doubt will occur), they would only be looking at 5 - 6 which hardly makes a difference.Damn, hopefully Sweden will order some finally…
Theoretically it is quite large with some 1500 odd aircraft in that class either in service or on order around the world at present. Even if only half is realistically targetable it is still significant. That said, the dominance of proven platforms such as the C-130 coupled with the fact that many won't see the KC-390 as providing enough of a step change in performance means that the KC-390 is unlikely to achieve more than a fraction of that. From what I understand there are only less than 30 either delivered or on order right now with the majority being from Embraer's home Brazilian govt.How big is the market for medium-sized, twin-fan military transports like the Japanese C1 and C2, Ebraeur KC-390, etc. We are talking about larger than a C-130, but lighter than a C-17. When I say "lighter than a C-17" I might be talking about a light gross weight, but the same diameter cargo compartment.
I think its much smaller than the projections Embraer used to justify the launch of this program, which they estimated to be about 250 airframes. I just don't see them selling that many aircraft. One big advantage of a legacy platform like the Hercules is that any operator of this aircraft, whether they have new or second hand airframes, can tap into a vast ecosystem where they will be able to recieve all the technical support and assistance that they need wherever the world their fleet is located. Not to mention access to a large amount of inexpensive spare parts. Embraer cannot come close to offering this. Perhaps some nations that want to diversify their inventories like the UAE or Qatar could aquire some examples. Lastly the big problem that Embraer faces is that this aircraft is competing with second hand Hercules for sales among cash strapped air forces. I think sales will pick up in the coming years, but it will be nowhere close to what they were originally projecting.How big is the market for medium-sized, twin-fan military transports like the Japanese C1 and C2, Ebraeur KC-390, etc. We are talking about larger than a C-130, but lighter than a C-17. When I say "lighter than a C-17" I might be talking about a light gross weight, but the same diameter cargo compartment.
Bit of a surprise, the Dutch have chosen the KC-390 to replace their Hercs.
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Defensie vindt opvolger voor C-130 Hercules
Defensie heeft in de C-390M van de Braziliaanse fabrikant Embraer een opvolger gevonden voor de C-130H Hercules. De bedoeling is dat het eerste nieuwe transportvliegtuig in 2026 in Nederland aankomt. Dat schrijft staatssecretaris Christophe van der Maat vandaag aan de Tweede Kamer.www.defensie.nl
i.e. Because the MoD wants to increase flying hours, the cost estimate rises. Initially the estimate was €250 M to 1B, That will become €1B to €2,5B.Doordat Defensie meer vlieguren wil maken, gaan ook de geschatte kosten omhoog. Aanvankelijk werd uitgegaan van € 250 miljoen tot € 1 miljard. Dat wordt nu tussen € 1 miljard en € 2,5 miljard.
The V2500 engines are not new technology, quite old, in fact and less common than CFM 56s. Quite why 5 aircraft should cost so much, compared to an equivalent airliner is mindboggling. These 390s use a lot of parts out of the existing Embraer fleet.€2.5B would be quite high a cost. Especially with a twin turbofans setup that should induce a cost reduction over a 4x Turboprops.
Congrats to the Dutches for being so forward thinking with their aerospace buy.
Again, a small potential sale, but it all adds up.
The V2500 engines are not new technology, quite old, in fact and less common than CFM 56s. Quite why 5 aircraft should cost so much, compared to an equivalent airliner is mindboggling. These 390s use a lot of parts out of the existing Embraer fleet.€2.5B would be quite high a cost. Especially with a twin turbofans setup that should induce a cost reduction over a 4x Turboprops.
Congrats to the Dutches for being so forward thinking with their aerospace buy.
Probably more like the C-2. Only half the power.This smells more and more like Japan Kawasaki C-1, unfortunately... https://en.wikipedia.org/wiki/Kawasaki_C-1
It will be great to see them in the skys....In anyway, that's their decision an it's great that we get to see the bird flying over Europe.
So it's never going to gross headline-inducing sales deals but if Embraer keeps faith and the line open (LM won't keep the Herk line open forever), they will probably turn a small profit in the end.
Indian or Israeli? I am assuming the former.It seems that good news will appear in the coming weeks, involving the C-390 and the IAF. Let's wait…
Indian or Israeli? I am assuming the former.It seems that good news will appear in the coming weeks, involving the C-390 and the IAF. Let's wait…