Embraer and Boeing join forces for KC-390 program

KC-390SÃO PAULO, Brazil, 27 June 2012. The Boeing Company [NYSE: BA] and Embraer [NYSE: ERJ; BOVESPA: EMBR3] have announced an agreement to collaborate on the KC-390 aircraft program. Under this agreement, Boeing and Embraer will share specific technical knowledge and evaluate markets where they may join their sales efforts for medium-lift military transport opportunities.

The KC-390 is a medium-size, twin-engine military transport aircraft. With a carry capacity of 23 tons, the KC-390 is the heaviest aircraft Embraer has developed. Development of the KC-390 started in 2008 when Brazil awarded Embraer a $440 million contract to design the aircraft.

The KC-390 collaboration is part of an agreement that Boeing and Embraer signed in April. The companies previously announced that they are exploring ways to cooperate in commercial airplane efficiency and safety, research and technology, and aviation biofuels. Boeing and Embraer will conduct a joint market assessment for the medium-lift military transport market and analyze business collaboration models. The market assessment includes potential customers that had not been considered in the initial market prospects for the KC-390.

The KC-390 is a Brazilian Air Force project which Embraer signed the development contract for in April 2009.

Boeing's relationship with Brazil dates back to 1932, when Boeing delivered the first F4B-4 fighters to the Brazilian government. Boeing opened its office in São Paulo in October.


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