Brazil has reduced its order for C-390 Millennium transport aircraft to 15, following Embraer’s rejection of a renewed deal.
Talks between the Brazilian Air Force and Embraer were initiated in April, and concluded on November 11, 2021.
According to Nasdaq, Embraer’s shares fell more than 8% following the announcement.
In June, the Brazilian Air Force announced its intention to reduce the order to “less than twenty”, citing budget constraints due to the COVID-19 crisis.
From 2014, Brazil ordered 28 C-390s, which were referred to as the KC-390 at the time. The country’s air force received the first aircraft in September 2019.
In November 2019, Embraer partnered with Boeing on the development and sale of the aircraft, establishing a joint venture. The jet was renamed C-390 Millennium, but the renewed marketing campaign did little to increase orders.
Boeing ended the partnership in April 2020, leaving Embraer to continue the troubled program alone.
In addition to the Brazilian Air Force, which already received five C-390s, five airplanes were ordered by Portugal and a further two by Hungary.
Embraer C-390 Millennium is a medium-size military transport aircraft comparable to the Lockheed-Martin C-130 and Antonov An-178. The aircraft conducted its maiden flight in 2015.