We will continue to love each other, says Bolsonaro to Embraer amidst dispute with FAB

A day after defending the Air Force’s decision to unilaterally reduce the purchase of units of the KC-390 freighter, President Jair Bolsonaro pledged his love to Embraer, the aircraft’s manufacturer.

“We’ll continue to love each other, okay?”, said a smiling Bolsonaro after getting to know a unit of the freighter inside during a visit to the Dubai Air Show, a fair in the air sector that opened this Sunday (14) in the Middle East emirate.

Then he gave Embraer Defense President Jackson Schneider a hug and got a miniature plane from him.

The two companies, partners for decades in the development of new aeronautical projects, entered into a commercial dispute last week, after the announcement that the FAB would reduce the number of purchased units of the freighter, one of the stars of Embraer and its big commercial bet on the time.

The purchase contract for 28 units will be cut to 15, with the justification that there are budget restrictions for the Air Force.

On Saturday (13), also in Dubai, Bolsonaro had defended the FAB’s decision. “There is no way to buy all that. We have to have a fleet that we can keep operational,” said the president.

The Brazilian government’s decision represents a potential damage to its image for the airline, which is trying to conquer new markets for the plane. So far, in addition to the units for Brazil, five have been sold to Portugal and two to Hungary.

The president’s visit to the fair in Dubai, and to the company’s stand, was already planned before the imbroglio was announced.

To get around the embarrassment, Bolsonaro made a point of honoring the company during his visit. He walked around the area where Embraer planes are exposed and talked to employees.

Accompanying the presidential delegation, Defense Minister General Walter Braga Netto said that the conversation with Embraer to resolve the conflict is continuing.

“The negotiation was not closed, and that was why we are here [na feira]. We are still negotiating, we are going to enter into an agreement”, declared the minister.

Embraer informed, in a note, that it is studying “legal measures” regarding the case, and is no longer commenting on the topic. One justification is that it has not yet been officially notified of the contract reduction.

Behind the scenes, there are conversations between the company’s management and the Air Force, to avoid a litigation situation.

The company, privatized in the 1990s, has a history of collaborating with the FAB on several projects.

At the moment, for example, two studies of new products are in progress: an unmanned vehicle, similar to a drone, which can be used for civil and military purposes, and a new freighter, lighter than the KC-390.

At first, the issue involving the KC-390 is one-off, and does not affect the other areas of collaboration. But there is fear that an escalation in the arm wrestling will permanently affect the relationship between the two parties.