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Brazil's Embraer Prefers Swedish Fighter -Report



SAO PAULO -(Dow Jones)- Brazilian aircraft manufacturer Embraer (ERJ) would prefer the government choose Saab's Gripen NG as the basis for the company's new fighter fleet because of the technology transfer opportunities it offers, a senior company executive told local business daily Valor Economico.

Adding spice to the decision-making process, Embraer's defense market vice president, Jose Ferreira Neto, said the company would like to work with the Swedish Gripen NG over its French and U.S. rivals because it has yet to go into production. This would give Embraer from-scratch knowledge on developing the plane.

Brazil is looking to order 36 fighter planes to replace its aging fleet and is choosing from Dassault Aviation SA's (AM.FR) Rafale, Boeing Co.'s (BA) F-18 and the Swedish option.

The French and U.S. offers are for flight-ready planes, which would limit local industry participation, Ferreira said.

President Luiz Inacio Lula da Silva went as far as announcing that the political decision had been made to buy Rafale during a visit by French President Nicolas Sarkozy earlier in the month, but he pulled back from that position. The government has invited improved offers from the three candidates by Oct. 2.

According to Ferreiro, the Swedish jet will have important locally produced components, and the development of the plane would bring technological benefits to Embraer, which is one of the world's leading regional jet makers.

-By Alastair Stewart, Dow Jones Newswires; 5511 2847-4520; alastair.stewart@ dowjones.com


  (END) Dow Jones Newswires
  09-28-091159ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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