Two governments and two aircraft manufacturers from each country, Embraer and Saab, are negotiating a new procurement model. Delegations from both countries are at the stage of completing discussions regarding the mechanisms and agreements that will be reached.
On April 11, Embraer and Saab agreed to jointly offer the C-390 Millennium to the Swedish Air Force and possibly other countries, discuss options for integrating Saab technologies on the Brazilian airlifter, and collaborate on future fighter technologies.
Brazilian President Luiz Inacio Lula da Silva received a delegation of Swedish authorities and businessmen on November 23.
According to local media, the delegation discussed Brazil's purchase of the second batch of F-39 Gripen fighter jets and the sale of the KC-390 multirole transport aircraft to the Swedish Air Force.
CNN Brazil reported that if Sweden's purchase of four KC-390 aircraft is completed, the Brazilian government will have to purchase a second batch of 14 Saab Gripen (F-39 Gripen) fighter jets.
Brazil has purchased 36 Gripen E/F jets from Swedish Saab, consisting of 28 F-39Es and 8 F-39Fs.
Previously, an amendment to the contract signed in 2014 by Brazil with Saab was guaranteed by financing from the Swedish government.
That allows up to 25 per cent more second-wave fighters under the same acquisition rules. According to negotiators, 14 of the 36 aircraft have been agreed upon.
