Julian Moxon/PARIS Paul Lewis/WASHINGTON DC
Dassault Aviation has announced its interest in becoming an investor in Brazilian regional aircraft manufacturer Embraer as the latter's principal shareholder, Bozano Simonsen, prepares to sell a 20% holding.
Dassault says that it is keen to bid for a stake in booming Embraer and that it will do so as part of a group of at least four French companies thought to include Aerospatiale Matra, Snecma and Thomson-CSF.
British Aerospace/Saab has declared an interest in Embraer, with the sale of military equipment to Brazil regarded as the prize for the successful bidder. Dassault, which says it is "one of a group of French investors and industries interested in taking a stake", would also aim to boost sales of its business jets in the region while gaining a stake in Embraer's regional aircraft and military trainer business.
Embraer is expected to choose an alliance partner before the end of the year after nearly two years of protracted negotiations. Talks initially failed to make headway because of the Brazilian air ministry's reluctance to sanction a foreign partnership.
The air force - which holds a golden share - has yielded to the company's strategic needs, however, and Embraer's finances have improved as regional jet sales have soared, with more than $6.6 billion in sales announced at this year's Paris air show alone, taking orders to $18 billion.
An Embraer investor would be in a strong position to win Brazil's FX competition for the acquisition of 80 fighters to replace its Northrop F-5E/F and Dassault Mirage IIIEBR fleet, together with F-5 upgrade work.
In addition to the French consortium and BAe, Boeing and possibly United Technologies are regarded as potential bidders, while a Brazilian requirement for a cargo aircraft - the CX programme - could interest DaimlerChrysler/ CASA, given the latter's competency in that market.
Source: Flight International
