© Reuters. FILE PHOTO: Brazilian aircraft manufacturer Embraer unveils its new cargo KC-390, in Gaviao Peixoto October 21, 2014. REUTERS/Paulo Whitaker
SAO PAULO (Reuters) – Brazilian planemaker Embraer SA (NYSE:) said on Friday it has agreed on a contract amendment with the country’s Air Force to cut orders for the KC-190 aircraft to 19 from 22, settling a longstanding dispute between the parties.
The Air Force had been looking to cut orders to 15 planes – almost half of its original 28-aircraft order, which had already been reduced to 22.
Embraer said in a securities filing that the new deal definitively ended the possibility of fresh unilateral order reductions. It added the agreement preserves its cash flow and does not change its guidance for 2022.
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