MercoPress. South Atlantic News Agency

IAE engines for Brazil’s Embraer first defence cargo aircraft KC-390

The successful Brazilian maker is targeting 20% revenue from defence procurement, beginning with the KC-390

Brazil’s Embraer, the world's biggest maker of regional aircraft, chose International Aero Engines as engine supplier for its military transport plane KC-390, signalling that the company is moving ahead in its venture into defence within schedule.

Embraer said in a statement on Monday that first deliveries of the V2500-E5 engine should begin in 2013. IAE is a multinational consortium formed by Rolls-Royce, United Technologies unit Pratt & Whitney and the Japanese Aero Engine Corp, among others.

“The choice of the first suppliers is key for us to start the project in this new, more advanced phase” Luiz Carlos Aguiar, head of Embraer's defence unit, said in the statement.

Embraer is betting on defence as geopolitical events lead Brazil and other countries to beef up security to protect extensive natural resources. Aguiar, Embraer's former chief financial officer, took over the defence unit in December to boost defence revenue from a floor of about 10% to 20% of total sales.

The engine announcement comes as investors wait for Embraer decision on whether it plans to build a new family of commercial jets. The decision is crucial because Embraer lacks a comprehensive offering of planes in the large commercial jet market -- which hinders its ability to win orders from airlines looking to buy aircraft of multiple sizes from one provider.

Deliveries of the first defence cargo airplane, known as the KC-390, are expected by the end of 2015, and analysts have predicted prices of between 80 and 100 million dollars per aircraft. Several Latin American and European countries have anticipated an interest in the cargo aircraft.