Brazil To Buy 28 KC-390 Aircraft Worth $3.3 Billion From Embraer

Embraer has signed a $3.3 billion deal with the Brazilian Air Force on Tuesday to build 28 newly launched KC-390 mid-sized cargo planes.

The KC-390s will allow the Brazilian Air Force to phase out some 21 aging C-130 Hercules it currently operates, the government said on Tuesday.

The planes will be built in São Paulo state over the life of the 10 year contract, according to reports.

The KC-190 is a smaller version of the Super Hercules and will be used for the air patrol along Brazil’s Amazon border. Embraer said Tuesday that their first KC-390 will be delivered later this year, with the first official Air Force versions to take flight sometime in early 2016.

Embraer President Jackson Schneider said the company hopes the KC-390 will be able to capture between 15% to 20% market share in the mid-sized cargo plane market by 2030. Market size for that type of military craft is relatively small, at around 7,800 worldwide over a 20 year period.

“Now we are looking for new contracts. We have 32 letters of intent already signed with other countries that are looking to turn those letters into firm orders,” Schneider told Brazilian reporters on Tuesday. Embraer already has letters of intent with Argentina, Chile, Colombia, Portugal and Czech Republica defense departments.