

Currently released so far... 6239 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Tijuana
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
ASEC
AU
AORC
AF
AM
AFIN
AEMR
AR
ASIG
AMGT
AG
APER
AL
ABLD
ASUP
AA
ASECKFRDCVISKIRFPHUMSMIGEG
AE
AMED
AS
AGMT
APECO
AO
AFFAIRS
AJ
ACOA
AX
AROC
ATFN
ASEAN
AFGHANISTAN
ADCO
AFU
AER
ALOW
AODE
ABUD
ATRN
AID
AC
AVERY
APCS
CASC
CJAN
CVIS
CS
COUNTER
CD
CU
CI
CO
CG
CE
CA
CMGT
CH
CWC
CBW
CKGR
CR
CN
CPAS
CONS
CDG
CLINTON
CT
CJUS
CY
CV
COUNTERTERRORISM
CIA
CACM
CDB
CAN
COE
CM
COUNTRY
CLEARANCE
CACS
CF
CONDOLEEZZA
CARSON
CL
CIS
CODEL
CTM
CB
COM
ECON
EFIN
ETRD
EAIR
EAID
ET
EFIS
ENRG
EPET
ETTC
ER
EG
EINV
EAGR
ELAB
EUN
EWWT
ENGR
EMIN
ECIN
ENIV
ES
EC
ECPS
EIND
EI
EU
ENVI
ETRDEINVECINPGOVCS
ELTN
EZ
EINT
ELN
EUR
EUNCH
EN
EINVECONSENVCSJA
ELECTIONS
EINVEFIN
ENNP
ECUN
EXTERNAL
EK
EFINECONCS
ECINECONCS
ECIP
EINDETRD
EUC
EREL
ENVR
ECA
ENERG
ENGY
ETRO
EFTA
ECONCS
ECONOMICS
ECONEFIN
EINVETC
EINN
ESA
ETC
ETRDEINVTINTCS
ESENV
ETRDECONWTOCS
IR
IZ
IWC
IC
ILC
IO
IAEA
IN
IS
IT
ICRC
INTELSAT
ILO
IBRD
IMF
ICAO
IMO
ITALY
ITALIAN
IRAQI
ITRA
ISRAELI
ICJ
IACI
INTERPOL
ID
IV
ICTY
IQ
IPR
INRB
ITPHUM
IIP
IL
IA
INR
ITPGOV
IZPREL
IRC
INRA
INRO
IRAJ
IEFIN
IF
KE
KCRM
KDRG
KIPR
KCOR
KSCA
KBIO
KDEM
KMCA
KMPI
KNNP
KJUS
KOMC
KGHG
KSUM
KSTC
KIRF
KTIP
KWMN
KZ
KG
KTFN
KHLS
KPAO
KFRD
KTIA
KOLY
KCFE
KISL
KFLU
KPKO
KWBG
KTBT
KTDB
KOCI
KUNR
KAWK
KICC
KPAL
KSTH
KN
KS
KGIC
KNPP
KWAC
KMDR
KAWC
KBCT
KIDE
KFLO
KWMNCS
KSEP
KU
KNEI
KVPR
KACT
KRAD
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KCIP
KSAF
KV
KSPR
KPRP
KFSC
KCRS
KR
KRFD
KX
KO
KPWR
KMIG
KSEC
KIFR
KDEMAF
KFIN
KGCC
KPIN
KHIV
KPLS
KIRC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KGIT
KBTS
KPRV
KBTR
KERG
KWMM
KRVC
KNSD
KVIR
KNUP
KTER
KDDG
KHSA
KMRS
KHDP
KTLA
KPAK
KNAR
KREL
KPAI
KTEX
KCOM
KNNPMNUC
KPOA
KLIG
KHUM
KDEV
KNUC
KCFC
KREC
KOMS
KWWMN
MASS
MP
MARR
MOPS
MNUC
MX
MO
MCAP
MY
ML
MU
MIL
MC
MTRE
MA
MD
MTCRE
MEPI
MAR
MRCRE
MR
MV
MPOS
MZ
MEPP
MOPPS
MAPP
MASC
MT
MERCOSUR
MK
MDC
MI
MAPS
MCC
MASSMNUC
MQADHAFI
MUCN
MTCR
MG
OVIP
OREP
OTRA
OSCE
OECD
OIIP
OEXC
OPCW
OPIC
OPDC
OPRC
ODIP
OVP
OSCI
OAS
OFDP
OTR
OSAC
OIC
OFFICIALS
OIE
PREL
PGOV
PHUM
PTER
PE
PINR
PINS
PARMS
PARM
PHSA
PA
PK
PBTS
PO
PREF
POL
PLN
POLITICS
PROP
PL
PM
PAO
PSI
PG
PEPR
POV
PALESTINIAN
PINT
PSOE
PU
POLITICAL
PARTIES
PBIO
PECON
PAK
POGOV
PINL
PKFK
PMIL
PY
PFOR
PHALANAGE
PARTY
PRAM
PMAR
PGOVLO
PUNE
PORG
PHUMPREL
PF
POLINT
PHUS
PGOC
PNR
PGGV
PNAT
PGOVE
PRGOV
PRL
PROV
PTERE
PGOF
PHUMBA
PINF
PEL
SNAR
SO
SENV
SU
SCUL
SOCI
SP
SC
SA
SMIG
SAN
SZ
SW
SN
SY
SR
SL
SEVN
SF
SYR
SI
SG
STEINBERG
SIPRS
SH
SNARCS
SOFA
SANC
SHUM
SK
ST
TERRORISM
TRGY
TZ
TX
TBIO
TSPA
TS
TSPL
TW
TU
TD
TIP
TURKEY
TP
TI
TC
TPHY
TH
TO
TK
TNGD
TINT
TRSY
TR
TFIN
TT
UG
UK
UP
UNGA
UNHRC
UZ
UN
UNAUS
USTR
UNSC
US
UNEP
UY
UNESCO
USUN
UNHCR
UAE
UNMIK
USEU
UV
UNO
UNDP
UNCHS
UNVIE
UNCHC
UE
UNDESCO
USAID
UNDC
Browse by classification
Community resources
courage is contagious
Viewing cable 06RIODEJANEIRO601, BRAZIL'S EMBRAER: SEEKING A U.S. DEFENSE RUNWAY FROM WHICH TO SOAR
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06RIODEJANEIRO601.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06RIODEJANEIRO601 | 2006-11-01 16:04 | 2011-01-21 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Rio De Janeiro |
VZCZCXRO6533
PP RUEHRG
DE RUEHRI #0601/01 3051657
ZNR UUUUU ZZH
P 011657Z NOV 06
FM AMCONSUL RIO DE JANEIRO
TO RUEHC/SECSTATE WASHDC PRIORITY 3031
INFO RUEHBR/AMEMBASSY BRASILIA 9453
RUEHSO/AMCONSUL SAO PAULO 4367
RUEHRG/AMCONSUL RECIFE 2723
RUEHBU/AMEMBASSY BUENOS AIRES 0481
RUEHMN/AMEMBASSY MONTEVIDEO 0320
RUEHAC/AMEMBASSY ASUNCION 0330
RUEHSG/AMEMBASSY SANTIAGO 0165
RUEHOT/AMEMBASSY OTTAWA 0015
RUEKJCS/SECDEF WASHINGTON DC
RUCOMFA/HQ USSOUTHCOM J3 MIAMI FL
RUEANHA/FAA NATIONAL HQ WASHINGTON DC
RUEATRS/USDOT WASHDC
UNCLAS SECTION 01 OF 03 RIO DE JANEIRO 000601
SIPDIS
STATE PASS USTR:SCRONIN/MSULLIVAN
USDOC FOR 3134/USFCS/OIO/WH/SHUPKA
USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWAR D
STATE PASS OPIC FOR MORONESE, RIVERA, MERVENNE
STATE PASS EXIM FOR NATALIE WEISS, COCONNER STATE PASS USTDA FOR AMCKINNEY AID/W FOR LAC/AA
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ETRD EAIR MARR BEXP BR
SUBJECT: BRAZIL'S EMBRAER: SEEKING A U.S. DEFENSE RUNWAY FROM WHICH TO SOAR
¶1. (U) Summary: On October 21 Admiral Edmund P. Giambastiani Jr., Vice Chairman of the Joint Chiefs of Staff, the Ambassador, and the Consul General met with Embraer President & CEO Mauricio Novis Botelho and Executive Vice President for Defense and Government Market, Luiz Carlos Aguiar, to review bilateral commercial relations between the U.S. and Brazil. Our Brazilian interlocutors discussed Embraer's recent history and strong financial status, the company's success in the regional and executive jet markets, and its desire to continue doing business with the U.S., particularly in the defense "niche market." Admiral Giambastiani emphasized the USG's need for joint service platforms that maximize military utility and cost efficiency. End summary.
EMBRAER'S POSITIVE RISK PROFILE
¶2. (U) Embraer's Botelho said he thought it would be fruitful to talk about the benefits that both countries can gain with increased partnership. He started out by focusing on Embraer's positive financial status and risk profile, stating that he feels that Embraer is a "good example of what free trade is all about," with US 20 billion dollars in exports last year and 10 billion dollars in imports. 12 to 14 billion dollars worth of goods and services were exported just to the US. Those statistics put Embraer just behind Airbus (France) and Boeing (US) in the aircraft market, and vying for third place with Bombardier (Canada). Botelho indicated that Bombardier is technically bigger in terms of overall revenue, but that Embraer has surpassed Bombardier in commercial aircraft. Embraer represents approximately 50 percent market share at present in 36 to 126-passenger aircraft.
¶3. (U) Operating in 69 countries, the company enjoys excellent financial status and recently received an investment grade rating by both Standard and Poors and Moody's. The company has a nearly US 14 billion dollar backlog of solid orders and an additional almost 15 billion dollars in options, totaling more than 2,000 aircraft, and it has been ranked as one of the largest Brazilian exporters since 1997. It is a major player on commercial aircraft, and has a niche operation in the defense market. In the U.S., Embraer has facilities located in Ft. Lauderdale and in Nashville. In addition, it recently announced that it will establish facilities in New Hartford, CT and an additional one in Ft. Lauderdale, as well as one in Mesa, Arizona which will potentially employ 250 workers. Currently, Embraer has 38 additional service centers to sustain its fleet of business jets.
¶4. (U) Embraer has developed risk-sharing partnerships with major U.S. aerospace companies, including General Electric Engine Company, Allison Engines (later purchased by RR), Honeywell, Hamilton Sundstrand, C&D, and Goodrich. It also has relationships with suppliers distributed among 25 U.S. states, and estimates that more than 7,000 U.S. jobs were either created or maintained in 2005 from a component purchase. More than 1200 aircraft have been sold to the U.S., including 345 turboprops and about 800 jets. Airline customers include American Eagle, Continental Express, Republic Airways, Midwest, Tran States, Mesa, Gecas, US Airways, and Jet Blue. Botelho characterized the 70-80, 100, and 126-seat jets as "small big jets", saying they really don't meet the criteria of regional jets anymore given their passenger capacity and comfort.
INVESTMENT IN THE FUTURE AND "PROTECTING THE CAMP"
¶5. (U) According to Botelho, the history of Embraer shows a successful evolution from a state-owned enterprise to privately held corporation. State-owned until December, 1994, it was privatized in 1995, when current management took control. In 1997, it reached break-even in terms of profitability, and since then has steadily grown. Embraer employs 19,000 employees worldwide, including 3,000 outside of Brazil, and has more than 4,000 engineers. From 2001 to 2005, about 540 engineers graduated with master's degrees specializing in aeronautical engineering, all paid for by Embraer. As Botelho says, "it's a business based on knowledge." The
RIO DE JAN 00000601 002 OF 003
Ambassador complimented Botelho on training some of the world's best engineers and observed that Embraer is currently suing Gulfstream for recruiting some of them away. Botelho said, laughing, "the Admiral will understand this. We have to protect our camp."
¶6. (U) Adm. Giambastiani acknowledged that skilled people are in tremendous demand, and asked what had brought Embraer to the decision to provide the training. Botelho said that they had analyzed the situation and realized there was not enough flow in Brazilian universities to supply the demand. It was not the level or quality of education available; Embraer's parastatal parent was created in the 1950s, and its first dean had previously been the head of the aeronautics department at MIT, so it was created with the same curriculum and standards. "But," said Botelho, "Competition is heavy. The investment banking sector takes a lot of our engineers away. . . it is really our biggest competitor."
COMPANY STRUCTURE
¶7. (U) Embraer restricts voting power to five percent for any shareholder, and limits foreign ownership to that of 2/3 of the Brazilian shareholders. Botelho indicated that if any shareholder reached 35 percent, Embraer would be forced to open the company to a 100 percent public offering. The GOB retains one voting share, to assure veto power on such proposals as new military programs, transfer of technology to other countries, changes in the bylaws, and the ability of someone else to purchase the company. However, said Botelho, even if a prospective buyer could achieve government buy-in, the company is further protected: the prospective buyer has to meet an asking price that is the value of the company plus 50 percent. As Botelho said, "That makes it less attractive." Embraer shares are traded on the NYSE and Sao Paulo Stock Exchange at 60 percent and 40 percent of its shares, respectively-further protection through market diversification.
FROM CORPORATE JETS . . .
¶8. (U) The Ambassador turned the conversation to small, private business jets. Botelho said that five years ago, Embraer launched the Legacy aircraft, with the intent to understand and learn how the market for small, executive jets works. They "learned a lot," and the Legacy-600 was born. From there, they launched a couple of new product lines with specialized or niche markets. They do not plan to build large numbers of these craft, but the intent is to "show the market that they are following demand." They are also competing effectively with larger and/or more expensive aircraft in terms of comfort and features offered; Legacy aircraft are being very well received, with about 320 orders so far, projected to be ready in two tranches in mid-2008 and mid-2009. The executive jet market is growing, and Botelho believes it will keep growing. As for defense, he sees that as a "niche operation, with some opportunities."
TO POSSIBLE DEFENSE SALES TO THE USG
¶9. (SBU) The Admiral stated that while he does not negotiate contracts, he would be happy to respond to Embraer's questions regarding the direction in which the US is moving, in particular with respect to intelligence, reconnaissance and surveillance (ISR) aerial manned platforms. Adm. Giambastiani explained to Embraer President Botelho and Vice President Aguiar that he is co-chairman of the USG's Defense Acquisition Board and that all programs for acquisition go through the Board. While there are a variety of other mechanisms within OSD for contract solicitation, no programs can go through without the Board's approval.
¶10. (SBU) Botelho said that Embraer looks at the defense market not so much as competing with U.S. firms, but complementing U.S. partners in competing for defense work. The reliability of its originally proposed Aerial Common Sensor (ACS) aircraft [E-145] is estimated at 99.75 percent. With prime contractor Lockheed Martin, Embraer had been contracted to deliver 38 aircraft for the US Army,
RIO DE JAN 00000601 003 OF 003
and 19 aircraft for the US Navy, with deliveries anticipated from 2009 to 2017. The contract was awarded in August 2004 and terminated in Jan. 2006. Botelho said that by the time the contract was awarded, the ACS platform complied in total with stated requirements, but when the program became Joint with the Navy and requirements grew, it became evident that the E-145 could not meet the increased weight, power and cooling requirements. Embraer worked rapidly and flexibly to offer the larger E-190 instead, but it was not feasible to effect the mission payload integration within the costs of the program and the contract was terminated by the Army. It "would have been a big hit for Embraer to serve the U.S. government and to open new opportunities abroad," Botelho said ruefully. As he put it, "Our situation today is that we have the conditions to keep supplying value. Where and how are the questions. I honestly do not know if there is additional opportunity, and would like to hear from the U.S."
¶12. (SBU) The Admiral noted that a series of studies was commissioned in the U.S. as to whether manned or unmanned platforms would meet future military requirements. Unmanned platforms do not meet all those needs, so there will be a program for a manned ISR platform. However, the program will be Joint from its inception, incorporating all Army and Navy needs up front. He said, "You will see the U.S. come back in for solicitations and bids in 2007," cautioning once again that he does not handle that, but will be reviewing requirements and cost drivers. But as he said, "We are serious about the program. But it must be a joint program, a joint operation, and a common platform." The Admiral stressed that the U.S. military's focus for the future would be capability, reliability, and cost effectiveness, including examining long-term life cycle costs and energy efficiency. Botelho closed by saying "We will compete strongly!"
¶13. (U) This cable was cleared by Ambassador Sobel and Admiral Giambastiani's staff.
Martinez