| RIO DE JANEIRO, June 13
RIO DE JANEIRO, June 13 Embraer SA
expects to reach terms on the sale of at least five KC-390
airlifters to Portugal within three months, landing the first
foreign order for the new plane with a NATO member country, two
people familiar with talks said on Tuesday.
The Brazilian planemaker is in negotiations that are in
various stages with around ten countries, including Sweden and
New Zealand, for the military cargo jet, according to the
sources, after six nations showed formal interest during early
The Brazilian Air Force has ordered 28 of the aircraft for
7.2 billion reais ($2.2 billion), with two deliveries set for
2018 and three in 2019.
Among foreign governments, talks with the Portuguese are the
most advanced after Lisbon authorized negotiations for five
KC-390s, the sources said. One said there may be an option for a
sixth KC-390 focused on domestic firefighting missions.
Common shares of Embraer rose 0.6 percent to 15.75 reais in
Sao Paulo trading, trimming year-to-date losses to 0.5 percent.
"Embraer does not comment on potential sales," the company
said in a statement.
The new cargo jet represents a bid by Embraer to take a bite
out of a military transport segment long dominated by the
workhorse Hercules C-130, made by U.S. aerospace firm Lockheed
Embraer has previously forecast a market worth over $50
billion in the coming decades to replace more than 700 older
Hercules aircraft, some of them in service since the 1960s.
Portugal, a founding member of the North Atlantic Treaty
Organization, was one of the first countries to express interest
in the KC-390 in 2010, along with Argentina, Brazil, Chile,
Colombia and the Czech Republic. Embraer's Portuguese subsidiary
OGMA has helped to build the jet's fuselage and other parts.
Chief Executive Paulo Cesar Silva said last month he was
"very confident" Embraer would get its first KC-390 order from
outside of Latin America this year.
In April, Embraer's defense unit head Jackson Schneider said
the KC-390 could yield the company $1.5 billion in annual
exports once the jet enters service next year.
($1 = 3.32 reais)
(Writing and additional reporting by Guillermo Parra-Bernal and
Brad Haynes; Editing by Bill Rigby and Bernadette Baum)