LAAD 2011: Embraer and AEL enter into joint venture

Embraer Defense and Security and Elbit subsidiary AEL Sistemas have agreed to launch a joint venture to exploit the emerging UAS requirements of the Brazilian Armed Forces.

At the LAAD 2011 exhibition in Rio de Janeiro, being held from 12 to 15 April, the two companies signed a strategic agreement that set the framework for the potential JV.

The new company, which has yet to be named, will be at least 51% controlled by Embraer, which is also considering injecting capital into AEL itself.

At a press conference during the exhibition, company representatives extolled the benefits of the agreement, especially considering the expected adoption of unmanned systems by the regional armed forces in coming years, but were able to provide few firm details given the early stage of negotiations.

Embraer Defense and Security president Luiz Carlos Aguiar said the exact division of tasks was still to be determined but it was expected that Embraer would be responsible for the certification process while AEL would primarily develop the UAS payloads. The two companies are also discussing joint activities in simulation systems development and avionics modernisation.

The Brazilian armed forces are currently evaluating the Hermes 450 UAS, although it is still working on the final configuration of any in-service system. Aguiar highlighted this project as well as the level of UAS component manufacture that is carried out in Brazil by AEL as evidence that the strategic alliance would 'absolutely be a success'.

The two companies have previously worked together when AEL supplied components for the Tucano training aircraft in the 1980s and 1990s while the Elbit subsidiary currently provides the avionics for the Super Tucano advanced trainer and Brazilian Air Force's modernised F-5M fighter aircraft.