Boeing-Embraer Deal Could Affect Brazilian Air Force Fighter Jet

01/23/2018 - 11h30

Swedish airplane manufacturer Saab could cancel its contract to supply Gripen jet fighters to the Brazilian Air Force if it believes that an eventual tie-up between American company Boeing and Brazilian company Embraer could put technological secrets of its aircraft at risk.

Folha has learned that this is the message that Saab is going to deliver on Tuesday (the 23rd) in a meeting scheduled with Defense Minister Raul Jungmann. The Swedish delegation will be headed up by the company's President, Hakan Buskhe.

In 2013 the Swedish aircraft won a long running international competition against the French Dassault Rafale and the American F/A-18, from Boeing.

The contract for the aircraft was signed in 2014 and another for financing in 2015. Valued at 39.3 Swedish Krona (R$ 15.7 billion, US$ 4.9 billion), 36 aircraft are to be delivered by 2024.

To clinch the deal, Saab agreed to a mandatory provision of technology transfer to the Brazilian Air Force and national companies - quarterbacked by Embraer, which will jointly build 8 - of the 15 - total aircraft.

The Swedish objection to sharing industrial process and systems integration information with American competitors increases Brazilian negotiating power in the deal with Boeing, although any interruption of the contract already being delivered with Saab is highly unlikely.

Negotiations are continuing, with options that were initially rejected by Boeing, like the creation of specific joint-ventures, back on the table.

Boeing sees Embraer as a strategic part of its positioning against European Airbus, which purchased Canadian company Bombardier's regional aircraft line last October.

Translated by LLOYD HARDER

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