Business

Brazilian Air Force reduces Embraer aircraft order once again

This is the second reduction in the contract, but markets haven't freaked out about the possibility of Embraer losing revenue

Air Force reduces Embraer order
The contracts between the federal government and Embraer were signed in 2014, initially worth BRL 7.2 billion (USD 1.36 billion). Photo: Marcelo Camargo/ABr

Brazilian planemaker Embraer informed that it has reached a new agreement with the Brazilian Air Force (FAB) regarding the number of KC-390 military aircraft ordered by the military. In a statement to Brazil’s Securities Commission (CVM), the company announced another reduction in the total number of jets commissioned, from 22 to 19. 

The company also stated that after negotiations, an agreement was reached to “redefine the delivery schedule, in order to spread the effect of the reduction in the number of aircraft out over time, and adjust contractual clauses in order to maintain the respective economic and financial balance.”

According...

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