Embraer says that South Africa is in talks to buy a C-390 plane

South Africa has advanced discussions over a prospective acquisition of Embraer’s C-390 Millennium, as stated by the Brazilian aircraft manufacturer on Wednesday, following a second demonstration of the military cargo aircraft in the country.

Embraer expressed confidence in securing a deal as South African authorities announced progress in the essential procedures for selecting the required aircraft for its National Defense Force, as stated in a communiqué.

Embraer did not specify the number of aircraft that could be sold or the current status of the process.

Shares of Embraer, traded in São Paulo, increased by almost 1% during morning trading, surpassing the benchmark stock index Bovespa (.BVSP), and extending their year-to-date gain to 125%, supported by robust demand for the company’s aircraft.

Santander analysts observed that the South African Air Force, “burdened by financial limitations,” presently operates six Lockheed Martin C-130s. Initially, there were nine; however, two have been decommissioned due to accidents, and another has been dismantled for spare parts.

Analysts lead by Lucas Barbosa calculated that if the country opts to entirely replace its existing airlifter fleet, a prospective South African order for C-390s might contribute $720 million to Embraer’s backlog.

A prospective agreement with South Africa would signify Embraer’s inaugural C-390 transaction with an African nation. The aircraft has thus far been utilized by Brazil, Portugal, Hungary, the Czech Republic, Austria, the Netherlands, and South Korea.

Embraer stated that the multi-mission aircraft, which competes with Lockheed’s C-130, is ideally positioned to replace the legacy aircraft presently in operation in South Africa.

The Brazilian firm showcased the C-390 to President Cyril Ramaphosa and Defense Minister Angie Motshekga at the Africa Aerospace and Defence exhibition earlier this month at Waterkloof Air Force Base.

Brazil and South Africa are both constituents of the BRICS coalition of significant rising economies.