Czech Republic Orders Two Embraer C-390 Millennium Multi-Mission Aircraft

Rhea-AI Summary

The Czech Ministry of Defense has signed a contract to acquire two Embraer C-390 Millennium multi-mission transport aircraft, making the Czech Republic the fourth NATO member to purchase this model. The aircraft will modernize the Czech Air Force's capabilities, enabling tactical transport, medical evacuation, firefighting, disaster management, humanitarian support, and air-to-air refueling missions. The deal includes a comprehensive training and support package and will boost the local aerospace industry's participation in production. The C-390 features a 26-ton payload capacity, 470-knot top speed, and has demonstrated a 93% mission capability rate with over 15,000 flight hours globally.

Positive

• New contract secured for two C-390 aircraft from Czech Republic
• Expansion of NATO customer base to four member countries
• Increased local aerospace industry participation in production
• Strong operational metrics: 93% mission capability rate and 99% mission completion rate
• Growing international market presence with orders from seven countries

Negative

• None.

Insights

Defense Industry Analyst

The Czech Republic's order for two C-390 Millennium aircraft represents a strategic win for Embraer's defense segment. This deal strengthens Embraer's position in NATO markets, following orders from the Netherlands, Hungary and Portugal. The contract's value, while not disclosed, typically ranges between $100-150 million per aircraft, suggesting a total deal value of approximately $200-300 million.

The agreement includes local industrial participation, which should create long-term revenue streams through maintenance, support and parts manufacturing. With a 93% mission capability rate and 99% mission completion rate, the C-390's proven reliability enhances its market appeal. This marks Embraer's seventh international customer for the C-390, demonstrating growing market acceptance and potential for future orders from other NATO allies seeking to modernize their transport fleets.

Aerospace Manufacturing Expert

The industrial cooperation aspect of this deal is particularly significant for Embraer's growth strategy. The Czech aerospace industry's involvement in C-390 production will help optimize manufacturing costs and strengthen the supply chain in Europe. This follows Embraer's successful model of establishing regional manufacturing partnerships, which has proven effective in securing orders and reducing production costs.

The C-390's technical specifications, including its 26-ton payload capacity and ability to operate from unpaved runways, position it uniquely in the medium-lift military transport market. The aircraft's growing order book and operational success validate its market positioning against competitors like the C-130J and A400M.

• The Czech Republic becomes the fourth NATO member to acquire the C-390 Millennium.

• This acquisition will benefit both the Czech Air Force and the local aerospace industry.

PRAGUE, Oct. 25, 2024 /PRNewswire/ -- Today, the Czech Ministry of Defense (MoD) signed a contract for the acquisition of two Embraer (NYSE: ERJ, B3: EMBR3) C-390 Millennium multi-mission transport aircraft.

These two NATO (North Atlantic Treaty Organization) standard aircraft will modernize and enhance the operational capabilities of the Czech Air Force. They will be able to perform a wide range of missions, such as tactical transport of troops, vehicles, and equipment, medical evacuation, firefighting, disaster management, humanitarian support, and air-to-air refueling.

This contract not only strengthens the Czech Air Force but also positively impacts the local aerospace industry, which will see a significant increase in its share of production for the program.

"Past and present history clearly shows us that the military needs to be able to transport people and heavier cargo over longer distances. Evacuations from Afghanistan and Sudan are clear evidence of this. I am therefore very pleased that we have managed to acquire aircraft for our Air Force that are capable of performing these tasks," said Defence Minister Jana Černochová.

"This order from the Czech Republic, a NATO member, is an invaluable mark of confidence for Embraer. It encourages us to implement the best technology to provide our customers with the operational capabilities needed to accomplish the most demanding missions. With this order, Embraer will reinforce its ties with the local Czech aerospace industry, recognized for its expertise and product quality for decades," said Bosco Da Costa Junior, President & CEO of Embraer Defense & Security.

In addition to the aircraft, Embraer will provide a comprehensive training and support package for the Czech Air Force to ensure the smooth integration of the aircraft into their fleet.

With a maximum payload of 26 tons, a top speed of 470 knots, and state-of-the-art technology, the C-390 is the leading aircraft in its class. Its powerful engines, large cargo hold with a rear ramp, and robust landing gear allow it to handle the most demanding missions, including operations from unpaved runways.

The current fleet of C-390 aircraft in service around the world has accumulated more than 15,000 flight hours, with a mission capability rate of 93% and mission completion rates exceeding 99%, demonstrating exceptional reliability in its category. Along with Czech Republic, the C-390 has been selected by the Netherlands, Hungary and Portugal, three NATO members, as well as Austria, Brazil, and South Korea. 

Images: Embraer DAM (bynder.com)

About Embraer

Embraer is a global aerospace company headquartered in Brazil, with businesses in Commercial and Executive Aviation, Defense and Security, and Agricultural Aviation. The company designs, develops, manufactures, and markets aircraft and systems, providing comprehensive after-sales services and support. Since its founding in 1969, Embraer has delivered over 9,000 aircraft. On average, one Embraer-manufactured aircraft takes off every 10 seconds somewhere in the world, transporting over 150 million passengers annually. Embraer is the leading manufacturer of commercial jets with up to 150 seats and the top exporter of high-value-added goods in Brazil. The company maintains industrial units, offices, service, and parts distribution centers across the Americas, Africa, Asia, and Europe.

View original content:https://www.prnewswire.com/news-releases/czech-republic-orders-two-embraer-c-390-millennium-multi-mission-aircraft-302287288.html

SOURCE Embraer S.A.

FAQ

What is the value of Embraer's (ERJ) contract with Czech Republic for C-390 aircraft?

The press release does not disclose the financial value of the contract for the two C-390 Millennium aircraft.

How many C-390 aircraft did Czech Republic order from Embraer (ERJ) in October 2023?

The Czech Republic ordered two C-390 Millennium multi-mission transport aircraft.

What is the payload capacity of Embraer's (ERJ) C-390 Millennium aircraft?

The C-390 Millennium has a maximum payload capacity of 26 tons.

Which NATO countries have ordered Embraer's (ERJ) C-390 aircraft?

The NATO countries that have ordered the C-390 are the Czech Republic, the Netherlands, Hungary, and Portugal.