| 2 December 2023, Saturday |

Austria taps Embraer’s C-390 aircraft to replace retiring C-130 fleet

Austria plans to replace its retiring C-130 Hercules fleet with Embraer’s (EMBR3.SA) C-390 Millenium military transport aircraft, the country’s Defence Minister Klaudia Tanner said on Wednesday.

Austria is aiming to buy about four aircrafts and is negotiating with the Netherlands on a potential joint order, Tanner told a news conference. A contract for an order should be signed in the first half of next year, she added.

In a statement, Embraer said it was honoured to be chosen to support Austria and is ready to meet the requirements, aiming to further strengthen its relationship with the country.

The Brazilian planemaker has been betting on expanding the order backlog of its defense unit to more countries. Aside from an order for 19 C-390 aircrafts from the Brazilian Air Force, Portugal has ordered five and Hungary has requested two.

The Netherlands previously announced its intention to buy the military cargo plane, also known as KC-390, but has not signed a firm order yet.

The Czech Republic, South Korea, India and Sweden are also tapped as potential buyers of the aircraft.

Analysts at JPMorgan calculated that including the prospective orders from Austria and The Netherlands, the aircraft’s potential lifetime sales stand at 35 units, 28 of which are still to be delivered.

The latest news reflects the “quality of the C-390,” JPMorgan said in a note to clients.

Shares in Embraer rose 2.85% in early trading on the Brazilian stock exchange, outperforming the Bovespa stock index (.BVSP), which rose 0.8%.

  • Reuters