Sweden and Brazil sign outline deal on fighter jets and cargo planes

(Reuters) – Sweden and Brazil signed a letter of intent yesterday to extend cooperation on aviation, with Brazil intending to buy SAAB SAABa.ST fighter jets and Sweden intending to buy Embraer EMBR3.SA cargo planes, the Swedish government said.

Brazil signed a contract in 2010 with Swedish defence company Saab to buy 36 JAS 39 Gripen planes. Saab and Brazil’s Embraer have also started joint production of JAS planes on site in Brazil.

“Now Brazil says it plans to extend the JAS 39 Gripen plane contract by 25%,” the government said in a statement late on Saturday.

In return, Sweden has selected Embraer’s EMBR3.SA C-390 Millennium as the country’s new military cargo aircraft, Embraer said.

The letter of intent was signed by Swedish Defence Minister Pal Jonson and his Brazilian counterpart Jose Mucio in Brazil.

“We have taken note of the information. It is of course very good news for SAAB and Sweden. We know that Brazil is very happy with JAS as its fighter jet. Now we look forward to continuing discussions with Brazil about further orders,” a SAAB spokesperson told Reuters, adding no contract with SAAB had been signed.

Swedish Radio reported on Tuesday, citing unnamed sources, that Colombia will buy a fleet of JAS Gripen fighter aircraft.