Embraer (NYSE:ERJ) reported its initial stock price moving higher Tuesday, on its latest foreign contract.
The Ministry of Defense and Armed Forces of the Czech Republic announced today the start of negotiations on potential acquisition of the new-generation multi-mission Embraer C-390 Millennium, a military transport aircraft. The decision to start negotiating towards possible purchase the C-390 was based on a market assessment and analysis prepared by Czech Republic's Ministry of Defense, which identified the C-390 as the most suitable solution for meeting the requirements of the Army of the Czech Republic.
Czech Republic intends to acquire two aircraft that will significantly increase its airlift capacity, allowing the Czech Army to perform missions such as air transport, air assault operations, aerial resupply, medical evacuation, humanitarian aid, air-to-air refueling and firefighting with these aircraft. Furthermore, the C-390 Millennium requires significantly less maintenance than other aircraft, which translates into higher availability and lower life-cycle costs.
"We are honored to be selected by the Ministry of Defense and Armed Forces to start negotiating on this significant acquisition and we are ready to provide the most advanced medium transport aircraft available in the market to the Czech Republic," said CEO Bosco da Costa Junior.
"The C-390 Millennium is drawing the attention of several nations around the world due to its unbeatable combination of high productivity and operating flexibility with low operating costs."
ERJ shares acquired 22 cents, or 1.6%, in the first hour of trade Tuesday to $14.14.
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