Embraer disappointed over cancellation of US contract

13/01/2006 - 21h38

Lourenço Melo
Reporter - Agência Brasil

Brasília - The board of directors of the Brazilian Aeronautics Company (Embraer) declared its "disappointment over the change of plans" concerning the sale of aircraft to the United States Army. On Friday (13), Embraer announced the suspension of plans to assemble ERJ 145 airplanes, in partnership with Lockheed Martin, in Florida. According to the company, the decision was made after the US Army imposed new demands in relation to the project, which involves the production of a surveillance and reconnaissance jet.

Nevertheless, Embraer states its inclination to maintain the Cecil Commerce Center (CCC), in Jacksonville, as the "site chosen for its defense initiatives in North America." The Brazilian company's plans to manufacture airplanes at the CCC were launched in 2003, when it selected the ERJ 145 jet project for its work platform and the project was accepted by the US Army in a bidding competition won by Embraer. However, the Army's most recent studies "suggested that the model would not be suitable to house the equipment necessary for it to comply with the requirements of the US Army's new generation battlefield surveillance system," a program known as the Aerial Common Sensor (ACS).

"We remain extremely confident that our product line is fully capable of meeting the client's needs, and we intend to pursue opportunities with the United States government with the same determination and spirit of cooperation that have characterized our activities up to now," Embraer affirms in its note to the press.

Translation: David Silberstein