In This Article:
Embraer S.A. ERJ revealed its strategic partnership agreement with L3Harris Technologies LHX to build an Agile Tanker aircraft, which will be an advanced version of the KC-390 Millennium tactical tanker aircraft, for the U.S. Air Force. The agreement is expected to support the U.S. Air Force in meeting operational imperatives and refueling needs in a contested mission area.
Details of the Agreement
As part of the agreement, Embraer and L3Harris will be involved in augmenting the operational capabilities of the KC-390 Millennium tactical tanker aircraft. The work involves upgrading the aircraft with advanced technology to make it efficient and sustainable in contested mission areas.
LHX and ERJ will be outfitting the aircraft with tactical network settings that will support the Joint All-Domain Command and Control requirements of the air force.
Benefits of the Upgrade
The KC-390 Millennium is a new-generation military multi-mission airlift aircraft. It brings unrivaled mobility, high productivity and operation flexibility at low operational costs on a single and unique modern platform.
The aircraft can refuel military aircraft with a variable speed drogue, receive fuel, and take off and land from short and improvised runways. These allow for greater mission area coverage.
The latest initiative by Embraer and L3Harris to upgrade the aircraft with meaningful and critical operational capabilities will increase its versatility and resiliency to perform in challenging mission areas. Moreover, Embraer’s state-of-the-art platform and systems, in combination with L3Harris’ mission-driven solutions, should make this next-generation aircraft more attractive for the air force.
This may result in a steady flow of contracts from Pentagon involving the upgraded KC-390 aircraft for Embraer, thus boosting its revenue generation prospects from defense businesses.
Growth Prospects
The continuously changing dynamics of the defense landscape and rising warfare challenges are propelling the demand for technologically advanced weapons and equipment. In this context, aerial refueling plays a vital role in military operations and may witness an increase in demand in the days ahead amid the current threat environment.
Per the report from MarketWatch, the global military aerial refueling tanker market size is likely to expand at a CAGR of 12.3% over the 2022-2030 period. Such abounding growth prospects may benefit Embraer, considering its capability in building the aircraft tanker, which suits military missions.
Other defense players that can enjoy the perks of the expanding aerial refueling tanker market size are as follows: