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Home -> Finance -> Full Story
Brazilian co to sign $ 130 mn defence pact with India
Wednesday, February 5 2003 14:35 Hrs (IST)

Bangalore: Brazilian aircraft manufacturer Embraer expects to sign a deal with the Indian government to sell six Legacy executive transport jets, believed to be valued at in the region of $ 130 million in the next two months, company officials indicated.

Its executive vice-president defence market Romualdo Monteiro de Barros, said the company has been selected by the Indian Air Force (IAF) to supply such aircraft through a tender process.

"We are now finalising negotiations with the government. Talks are progressing well", he told reporters on February 4.

According to him, the initial contract is for six numbers.

He said Legacy jets have different configurations and seating capacity can go up to 18 to 22.

Embraer's director international business defence market Eduardo Munhos de Campos, said the company expected to complete the negotiations and sign the deal in the next two months.

While Legacy carried different price tags depending on various factors, the one being offered to India is around $ 22 million a machine, Campos indicated.

Embraer, which clocked revenues to $ 3.2 billion for the calendar year 2002, has proposed to the Indian government the company's readiness to integrate Indian sensors and electronic warfare systems in its platforms and market them jointly for the global market, he said.

Meanwhile, Embraer would deliver to India's Jet Airways first of the 10 Embraer-175 commercial jets in the third quarter of next year and the remaining nine by 2007, under a $ 260 million contract, for which a letter of intent had already been signed.

Embraer-175 is a 73-seater aircraft in mixed class (business and economy), the company's director business development Asia Pacific Ricardo Pesce said.

"We are also having talks with Sahara Airlines and Indian Airlines," Pesce added.

Ambassador of Brazil in India Vera Barrouin Machado, who also spoke to reporters later, said defence co-operation between India and her country has "just started" and it would be developed this year and expressed optimism of an announcement (of defence deal) in the next few months.

Embraer is displaying at Aero India 2003, a five-day international aerospace exposition starting in Bangalore on February 5, the Legacy business jet, its training/attack aircraft, the AMX-T and the ALX Super Tucano and its family of ISR (Intelligence, Surveillance and Reconnaissance) systems aircraft, officials said.

PTI







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