KC 390 FLIES INTO TURBULENCE
Geopolitics|June 2020
With Boeing and Embraer parting ways, the KC-390 has run into some turbulence. It will now have to create a network to sell the aircraft and find new customers. Also, possibly a new partner
KC 390 FLIES INTO TURBULENCE

With the deal between Embraer and Boeing being called off, it is the KC 390, the pride of Embraer’s military and the flagship product from the defence division of Embraer, that stands at the crossroads. Embraer desperately needs new partnerships for the KC-390 and its commercial business. Will it be an Indian or Chinese company? Or will it be Airbus?

When Boeing terminated its $4.2 billion deal with for a majority stake in Embraer’s commercial aviation business it was a stake right in the heart of the defence collaboration between the two companies that had been formalised only months earlier at the Dubai Air Show in November 2019. In fact, the implications for the KC 390 — the pride of Embraer’s Military and the flagship product from the defence division of Embraer — are huge.

The Achilles’ heel, as far as Embraer was concerned, has always been to find the marketing muscle to make the KC- 390 a globally competitive aircraft. That would have been possible with the huge bandwidth that Boeing would have brought to the table with its behemoth marketing network across the world. It would have opened up new markets and significantly enlarged opportunities in terms of sales. In fact, this new market pitch was at the core of the agreement between the two companies: Boeing and Embraer agreeing to work together to “promote and develop new markets” for the KC-390. Embraer was to own a 51 per cent stake in the KC-390 joint venture, with Boeing owning the rest. Now, all that has gone up in smoke.

Post the acrimonious parting, Boeing let it be known that the previous teaming agreements (signed as early as 2014-15) to support Embraer with marketing the C-390 internationally would hold. But no one takes that seriously. The bad blood between the two former partners could put paid to any such ambitions.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM GEOPOLITICSView all
NEW MANTRA FOR DISPUTE RESOLUTION
Geopolitics

NEW MANTRA FOR DISPUTE RESOLUTION

AMIT COWSHISH explains why the Ministry of Defence (MOD), which is one of the biggest spenders, needs to watch out for the latest mediation rules.

time-read
10+ mins  |
August 2024
NEW WAVE TERRORISM IN JAMMU & KASHMIR
Geopolitics

NEW WAVE TERRORISM IN JAMMU & KASHMIR

KARAN KHARB argues that Pakistan's continued use of proxy war tactics against India, particularly in Jammu and Kashmir, poses a severe threat to national security. He advocates for a shift from a reactive to a proactive approach in counter-terrorism efforts, emphasizing the need for a comprehensive review of military strategies and a coordinated national policy to address both external and internal security challenges effectively.

time-read
9 mins  |
August 2024
INDIAN NAVY'S PROJECT-751 - GERMAN TKMS LEADS SPANISH NAVANTIA AFTER FIELD TRIALS FOR AIP-SUBMARINE DEAL
Geopolitics

INDIAN NAVY'S PROJECT-751 - GERMAN TKMS LEADS SPANISH NAVANTIA AFTER FIELD TRIALS FOR AIP-SUBMARINE DEAL

German submarine-builder ThyssenKrupp (TKMS) and India's Mazagaon Dockyard Limited (MDL) have emerged as leaders in the Indian Navy's Project-751, which aims to build six submarines with Fuel Cell Air-Independent Propulsion (AIP) and Lithium-ion batteries. Following successful field trials, TKMS and MDL have gained an edge over competitors by demonstrating their proven AIP technology and advanced submarine design tailored to the Indian Navy's needs.

time-read
3 mins  |
August 2024
VIKSIT BHARAT FROM A DREAM TO REALITY
Geopolitics

VIKSIT BHARAT FROM A DREAM TO REALITY

The article explores India's ascent as a global influencer, emphasising its strategic advancements in foreign policy, defence, and economic growth. It also highlights India's challenges in achieving sustainable development and strengthening internal security. Adopting a forward-looking approach, the article envisions India's rise as a major economic power and a key player in global stability, as outlined by LT. GEN. A.B. SHIVANE (RETD.).

time-read
5 mins  |
August 2024
WILL MODI APPLY THE LESSON LEARNT FROM KOREA IN UKRAINE?
Geopolitics

WILL MODI APPLY THE LESSON LEARNT FROM KOREA IN UKRAINE?

Speculation around Prime Minister Narendra Modi's possible visit to Ukraine raises questions about India's role in mediating peace between Russia and Ukraine. Drawing from its experience during the Korean War, India may seek to leverage its strategic neutrality to foster dialogue in a conflict where China and Turkey have also shown interest, opines PRAKASH NANDA.

time-read
6 mins  |
August 2024
UGVS: THE NEXT DIMENSION OF WARFARE
Geopolitics

UGVS: THE NEXT DIMENSION OF WARFARE

With the rest of the world developing unmanned ground vehicles at a breakneck speed, it is time for India to join the bandwagon at the earliest.

time-read
9 mins  |
August 2024
SUPERSONIC DESTROYER
Geopolitics

SUPERSONIC DESTROYER

The BrahMos programme has filled a critical gap in the Indian armed forces' missile inventory and continues to attract strong export interest, writes ATUL CHANDRA.

time-read
8 mins  |
August 2024
POLICE MODERNISATION: AN URGENT NEED OF THE HOUR
Geopolitics

POLICE MODERNISATION: AN URGENT NEED OF THE HOUR

India is facing many internal security threats, and it is time to reshape the strategic dynamics by modernising the police forces.

time-read
9 mins  |
August 2024
FUTURE FIGHTER
Geopolitics

FUTURE FIGHTER

FIA 24 provided important insights into the Global Combat Air Programme, which will redefine the future of air combat, reports MIKE RAJKUMAR.

time-read
7 mins  |
August 2024
FILLING THE GAP
Geopolitics

FILLING THE GAP

A new Medium Transport Aircraft is essential for the IAF, but it will have to compete with other pressing programmes fighting for limited budgetary resources, analyses ATUL CHANDRA.

time-read
8 mins  |
August 2024