Defense & Military
Embraer Expands Defense Partnerships in the Netherlands for C-390 Program
Embraer signs strategic agreements with Dutch companies TNO, OPT/NET, and ILIAS to integrate AI and fleet management in support of C-390 delivery.
We are witnessing a significant deepening of ties between the Brazilian aerospace giant Embraer and the European defense sector. In a move that underscores the growing importance of cross-border collaboration in defense technology, Embraer has officially signed cooperation agreements with three prominent organizations in the Netherlands: TNO, OPT/NET, and ILIAS Solutions. These partnerships are not merely administrative formalities; they represent a strategic integration of Dutch technological expertise into Embraer’s global supply chain and defense ecosystem.
This development follows the Royal Netherlands Air Force’s decision to acquire five C-390 Millennium transport aircraft, a procurement choice that has triggered substantial industrial engagement. We understand that these agreements fall under the umbrella of the Industrial Participation Policy, a framework designed to ensure that major defense acquisitions translate into tangible economic and technological benefits for the purchasing nation. By engaging with local industry, Embraer is fulfilling its offset obligations while simultaneously accessing niche capabilities in artificial intelligence, autonomous systems, and fleet management.
The collaboration involves not only Embraer but also its subsidiary, Atech, which specializes in Command, Control, Communications, Computers, and Intelligence (C4I). The inclusion of Atech signals that these partnerships will focus heavily on software integration, data processing, and advanced mission systems. As we analyze the specifics of these agreements, it becomes clear that the focus is on future-proofing defense capabilities through the fusion of hardware and advanced digital solutions.
The core of this announcement revolves around three distinct collaborations, each targeting a specific area of modern warfare and logistics. We see a clear division of labor where each Dutch partner brings a specialized skill set to the table, complementing Embraer’s platform capabilities.
The first major agreement is with TNO, the Netherlands Organization for Applied Scientific Research. TNO holds a unique position as an independent research body established by law to support the Dutch government and industry. In the context of this partnership, the focus is on the development of multi-agent systems. We understand this to mean technologies that allow autonomous units, such as drones or unmanned vehicles, to operate in coordination with human commanders.
Specifically, the collaboration aims to enhance “human-machine teaming” for defense missions. In modern operational scenarios, the ability of a human operator to effectively manage multiple autonomous systems is critical. TNO has established experience in creating scenarios where commanders control teams of semi-autonomous land robots and UAVs for reconnaissance. By integrating this expertise, Embraer and Atech aim to develop solutions that could potentially be applied to surveillance missions and future platform upgrades.
The second partnership involves OPT/NET, a deep-tech startup with roots in the European Space Agency (ESA) incubation program. This collaboration addresses one of the most pressing challenges in modern defense: data overload. OPT/NET’s flagship technology, OptOSS AI, is designed to process massive streams of time-series data to detect anomalies in real-time. We see this as a critical capability for maintaining situational awareness in complex environments.
The goal here is to apply AI to support decision-making during military operations. When commanders are flooded with sensor data from aircraft, ground units, and satellites, identifying relevant signals amidst the noise is impossible without algorithmic assistance. OPT/NET’s technology is tailored to handle high-volume, unpredictable streaming data, transforming it into actionable intelligence. This partnership highlights the increasing reliance on artificial intelligence to speed up the OODA (Observe, Orient, Decide, Act) loop in combat situations. The third agreement focuses on logistics and operational readiness, partnering with ILIAS Solutions. Unlike the experimental nature of the TNO and OPT/NET projects, ILIAS provides commercial off-the-shelf (COTS) defense software that is already in use by various air forces. The objective is to integrate the ILIAS software suite with Embraer’s existing maintenance and logistics systems.
This integration is intended to serve the C-390 Millennium and the A-29 Super Tucano aircraft. By connecting these systems, operators can achieve a “single source of truth” regarding fleet status. This means commanders and logistics officers will have access to real-time data on aircraft availability, maintenance requirements, and supply chain status. We recognize that in high-tempo operations, the ability to predict maintenance needs and manage spare parts efficiently can be the deciding factor in mission availability.
“These collaborations mark another milestone in Embraer’s relationship with the Dutch defense ecosystem, reinforcing our commitment to co-developing advanced technologies and operational solutions with trusted partners.” — Frederico Lemos, CCO, Embraer Defense & Security.
To fully understand the weight of these agreements, we must look at the policy framework driving them. The Dutch Ministry of Economic Affairs enforces a strict Industrial Participation (IP) Policy. When the Netherlands purchases foreign military equipment, such as the C-390, the supplier is required to reinvest a portion of the contract value back into the Dutch economy. This is often done through research contracts or manufacturing orders placed with local companies.
The primary goal of the IP policy is to strengthen the Dutch Defense Technology Industrial Base (DTIB). By mandating cooperation, the government ensures that billions of euros in defense spending help maintain high-tech jobs and “sovereign capabilities”, knowledge and technology that are deemed critical for national security. We see this as a mutually beneficial arrangement: the Netherlands secures its industrial future, while Embraer gains access to top-tier European innovation.
Jan Christiaan Dicke, the Commissioner for Military Production at the Dutch Ministry of Economic Affairs, has noted that this policy is essential for fostering knowledge and industrial capacity. For Embraer, adhering to these requirements is not just a legal necessity but a strategic entry point into the broader NATO defense market. By embedding itself with key players like TNO, Embraer is signaling its long-term commitment to the region.
With the first delivery of the C-390 Millennium to the Royal Netherlands Air Force expected in 2027, these partnerships are timed to mature alongside the aircraft’s entry into service. The technologies developed, whether in AI, autonomy, or logistics, have the potential to be integrated into the C-390 platform, enhancing its value proposition for other European customers. We observe that as defense platforms become more software-defined, the quality of the digital ecosystem surrounding the hardware becomes just as important as the airframe itself.
The strategic partnerships signed between Embraer and its Dutch counterparts, TNO, OPT/NET, and ILIAS Solutions, represent a calculated fusion of aerospace engineering and digital innovation. Driven by the Netherlands’ Industrial Participation Policy, these agreements ensure that the acquisition of the C-390 Millennium delivers lasting technological and economic value to the Dutch defense sector.
As we look toward the 2027 delivery timeframe, the success of these collaborations will likely serve as a case study for how global defense contractors can effectively integrate with local industries. By leveraging Dutch expertise in AI and logistics, Embraer is not only meeting its contractual obligations but also enhancing the operational capabilities of its aircraft for the future battlefield. Question: What prompted these new partnerships? Question: What is the role of TNO in this collaboration? Question: How does ILIAS Solutions contribute to the Embraer ecosystem?
Strengthening Defense Ties: Embraer’s Strategic Expansion in the Netherlands
Integrating Dutch Innovation: The Three Key Partnerships
TNO: Advancing Human-Machine Teaming
OPT/NET: AI-Driven Decision Support
ILIAS Solutions: Streamlining Fleet Management
Strategic Context and Industrial Participation
Strengthening the Defense Technology Industrial Base
Future Implications for the C-390 Program
Conclusion
FAQ
Answer: These agreements are part of the Industrial Participation obligations linked to the Royal Netherlands Air Force’s purchase of five C-390 Millennium aircraft.
Answer: TNO will work with Embraer and Atech to develop technologies for multi-agent systems and human-machine teaming, focusing on the coordination between human operators and autonomous systems.
Answer: ILIAS Solutions will integrate its fleet management software with Embraer’s systems to provide a unified view of logistics and operational readiness for aircraft like the C-390 and A-29 Super Tucano.
Sources
Photo Credit: Embraer
Defense & Military
Embraer and Valkyrie Aero Enhance A-29 with AI for Counter-Drone Missions
Embraer and Valkyrie Aero partner to integrate AI-driven Gunslinger system into A-29 Super Tucano for improved drone detection and engagement.
This article is based on an official press release from Embraer.
Embraer Defense & Security has announced a strategic partnership with U.S. defense contractor Valkyrie Aero to enhance the capabilities of the A-29 Super Tucano. According to an official statement released on March 4, 2026, the collaboration focuses on integrating Valkyrie’s proprietary “Gunslinger” AI suite into the aircraft, specifically targeting the Counter-Unmanned Aerial Systems (C-UAS) mission profile.
The initiative aims to address a growing disparity in modern aerial warfare: the economic and tactical difficulty of using high-performance jets to intercept low-cost, disposable drones. By equipping the A-29 turboprop with advanced artificial intelligence, the companies intend to improve the “Find, Fix, Finish” kill chain, allowing for more efficient detection and neutralization of hostile unmanned systems.
The core of this partnership is the integration of the “Gunslinger” system. Unlike external hardware pods often associated with capability upgrades, the press release describes Gunslinger as an AI software layer. This system is designed to integrate directly with the A-29’s existing avionics and Electro-Optical/Infra-Red (EO/IR) sensors.
In operation, the AI analyzes real-time sensor data to automatically detect and track small, slow-moving targets that can be difficult for human pilots to visually identify in cluttered environments. Once a target is acquired, the system provides firing solutions for the A-29’s standard arsenal.
Marcio Monteiro, Vice President at Embraer Defense & Security, highlighted the platform’s suitability for this role:
“With over 60,000 combat flight hours, the A-29 Super Tucano is the gold standard for light attack globally, and the ideal platform for manned C-UAS operations.”
The system utilizes the A-29’s existing weaponry to engage drone threats cost-effectively. According to the announcement and technical details provided regarding the integration, the primary engagement tools include:
Chris Turner, Senior Vice President at Valkyrie Aero, emphasized the practical origins of the technology:
“Gunslinger is born from the immediate needs of the frontline warfighter, whom Valkyrie trains and engages with every day.”
This partnership addresses the “cost exchange” imbalance currently challenging defense forces worldwide. Intercepting cheap, one-way attack drones with advanced fighter jets and sophisticated missiles is often economically unsustainable. The A-29 Super Tucano offers a distinct alternative through its flight characteristics and operating costs. We observe that the shift toward using turboprops for C-UAS missions is driven by three critical factors: speed, loiter time, and cost. While jet fighters often fly too fast to effectively track slow-moving drones, the A-29 has a low stall speed of approximately 80 knots, allowing it to fly alongside targets for stable tracking.
Furthermore, industry data indicates that the A-29 can remain on station for over six hours with external tanks, providing persistent defensive cover that fuel-hungry jets cannot match. Financially, the operational cost per flight hour for a turboprop like the A-29 is estimated between $1,000 and $1,500, a fraction of the $20,000+ often required for fourth or fifth-generation fighters. This announcement positions Embraer to compete directly with other light attack solutions, such as the L3Harris SkyWarden and Textron AT-6 Wolverine, in the expanding market for sustainable aerial defense.
Embraer Defense & Security is the manufacturer of the A-29 Super Tucano. To date, the company has delivered over 260 aircraft to more than 16 air forces. The fleet has accumulated over 500,000 flight hours, including more than 60,000 combat hours, validating its reliability in active conflict zones.
Valkyrie Aero is a U.S. Department of Defense prime contractor specializing in tactical training and Close Air Support (CAS). The company operates a significant privately-owned fleet of Tucanos and holds a Military Flight Release (MFR) from the USAF and US Navy, authorizing them for night operations and weapons release, a credential that underscores their operational expertise.
What is the “Gunslinger” system? Does this require new weapons on the A-29? When was this partnership announced?
Embraer and Valkyrie Aero Partner to Transform A-29 into AI-Driven “Drone Hunter”
Integrating the “Gunslinger” AI Suite
Weaponry and Engagement
Strategic Context: The Economics of Counter-Drone Warfare
AirPro News Analysis
About the Partners
Frequently Asked Questions
Gunslinger is an AI software suite developed by Valkyrie Aero that processes sensor data to automate the detection, tracking, and targeting of drones.
No. The system is designed to utilize the A-29’s existing internal .50 caliber machine guns and laser-guided 70mm rockets.
Embraer and Valkyrie Aero officially announced the partnership on March 4, 2026.
Sources
Photo Credit: Embraer
Defense & Military
First Royal Canadian Air Force PC-21 Completes Maiden Flight
The RCAF’s first Pilatus PC-21 completed its maiden test flight in Switzerland, advancing Canada’s Future Aircrew Training Program.
This article is based on official announcements from Pilatus Aircraft and SkyAlyne.
The Royal Canadian Air Force (RCAF) has moved one step closer to revitalizing its pilot training infrastructure. On February 26, 2026, the first Pilatus PC-21 destined for Canada successfully completed its inaugural production test flight. According to an announcement from Pilatus Aircraft, the flight took place at the manufacturer’s facility in Stans, Switzerland, marking a critical milestone for Canada’s Future Aircrew Training (FAcT) Program.
Designated as the CT-157 Siskin II by the RCAF, this aircraft represents the first of 19 trainers ordered to modernize Canada’s military flight instruction. The successful sortie, which lasted approximately one hour and 15 minutes, verified the functionality of the engine, flight controls, and avionics systems against manufacturing specifications.
The flight of the first CT-157 Siskin II is a tangible result of the massive CAD 11.2 billion FAcT Program contract awarded in May 2024. SkyAlyne, a joint venture between Canadian aviation leaders CAE and KF Aerospace, manages the 25-year contract to overhaul aircrew training for the RCAF. Under this program, the PC-21 will replace aging fleets, including the CT-156 Harvard II and the CT-155 Hawk, consolidating training into a unified, modern system.
According to program details released by SkyAlyne, the PC-21 is not merely a replacement but a technological leap. The aircraft is designed to bridge the gap between primary flight training and the cognitive demands of fifth-generation fighters like the F-35. Charles Caldwell, SkyAlyne’s Program Manager for FAcT, emphasized the importance of this development in a recent statement:
“This is a very exciting milestone in the progression of the program. PC-21s (CT-157s) have been identified as the ideal advanced training platform for RCAF pilots and are an integral piece of the FAcT program.”
The PC-21 is widely regarded as the world’s most advanced turboprop trainer. Data from Pilatus Aircraft confirms that the CT-157 Siskin II is powered by a Pratt & Whitney Canada PT6A-68B engine, capable of delivering 1,600 shaft horsepower. This power allows the aircraft to reach speeds of up to 370 knots (685 km/h) and sustain G-forces ranging from +8G to -4G, simulating the physical environment of high-performance combat jets.
Inside the cockpit, student pilots will encounter a “glass cockpit” environment featuring heads-up displays (HUD) and mission management systems that replicate modern frontline fighters. This configuration allows the RCAF to offload training hours from expensive jet platforms to the more cost-efficient turboprop without sacrificing the quality of avionics training.
Following this successful first flight, the aircraft, bearing serial number 157201 and the temporary Swiss test registration HB-HXA, will undergo further testing. SkyAlyne expects the delivery of the first aircraft to Canada in the second half of 2026. The fleet will eventually be stationed at 15 Wing Moose Jaw in Saskatchewan, which serves as the hub for Canadian military-aircraft pilot training. The name “Siskin II” pays homage to the Armstrong Whitworth Siskin, one of the RCAF’s first fighter aircraft from the 1920s. By reviving this historical name, the RCAF links its heritage to its future, as the FAcT program aims for full operational capability by 2029.
The successful flight of the CT-157 Siskin II highlights a broader global trend in military aviation: the “downloading” of advanced training syllabus items onto high-performance turboprops. Historically, students moved quickly from basic props to jet trainers like the Hawk. However, as the operating costs of jet trainers rise and the avionics of frontline fighters become more complex, air forces are turning to platforms like the PC-21 to teach mission management earlier in the pipeline.
For Canada, this shift is also a matter of sovereign industrial capability. While the airframe is Swiss, the engine is Canadian-made by Pratt & Whitney Canada. This alignment supports the government’s Industrial and Technological Benefits (ITB) policy, ensuring that defense spending recirculates within the Canadian aerospace sector. By joining other top-tier operators such as Switzerland, Australia, France, and the UK, the RCAF is standardizing its training regimen with NATO allies, potentially facilitating easier cross-training and interoperability in the future.
Sources: Pilatus Aircraft (Twitter/X), SkyAlyne / KF Aerospace Press Release
First Royal Canadian Air Force PC-21 Completes Maiden Flight in Switzerland
A New Era for Canadian Pilot Training
Aircraft Specifications and Capabilities
Strategic Timeline and Deployment
AirPro News Analysis
Sources
Photo Credit: Pilatus
Defense & Military
Dassault Aviation 2025 Results Show Rafale Growth Amid Falcon Supply Issues
Dassault Aviation’s 2025 sales rose 19% to €7.42B led by Rafale fighters, while Falcon jets faced supply chain delays. Backlog reached €46.6B.
This article is based on an official press release from Dassault Aviation.
Dassault Aviation reported strong financial results for the full year 2025, driven largely by the continued dominance of its defense sector. In a financial release published on March 4, 2026, the French aerospace manufacturer revealed that adjusted net sales climbed to €7.42 billion, surpassing its previous guidance of €7 billion. This represents a 19% increase over the €6.23 billion reported in 2024.
The company’s performance highlights a “two-speed” dynamic currently affecting the manufacturer. While the Rafale fighter program exceeded delivery targets and secured major export orders, the civil aviation segment struggled to meet its goals. For the third consecutive year, Falcon business jet deliveries fell short of guidance due to persistent supply chain constraints.
Despite these industrial challenges, the company’s backlog reached a record €46.6 billion, providing significant visibility for the coming years. Management has issued a positive outlook for 2026, forecasting revenue growth to approximately €8.5 billion as production rates ramp up to meet global demand.
According to the consolidated financial results released by the company, Dassault Aviation achieved growth across key profitability metrics. Adjusted operating income rose to €635 million, up 22% from €519 million in 2024. This improvement pushed the operating margin to 8.6%, a slight increase from the previous year’s 8.3%.
Adjusted net income remained relatively stable at €1.06 billion. The company noted that this figure was impacted by a specific €67 million tax surcharge in France; without this exceptional item, net income would have seen more substantial growth. Reflecting this stability, the Board proposed a dividend of €4.78 per share, up slightly from €4.72 in 2024.
Total orders intake for 2025 stood at €10.94 billion, comparable to the €10.87 billion recorded in 2024. The backlog as of December 31, 2025, grew by 8% to €46.6 billion. This backlog is heavily weighted toward the defense sector, which now accounts for 220 Rafale aircraft (175 for export and 45 for France), compared to 73 Falcon business jets.
The defense segment continues to be the primary engine of growth for Dassault Aviation. The company delivered 26 Rafale aircraft in 2025, beating its own guidance of 25. Of these deliveries, 15 were for export customers and 11 were for the French military. Commercial momentum for the fighter remains robust. The company secured orders for 26 Export Rafale aircraft during the year. A significant portion of this intake is attributed to the Indian Navy’s selection of the Rafale Marine variant, a deal that cements India’s status as a critical strategic partner for French aerospace.
To meet this swelling demand, Dassault Aviation confirmed it is executing a plan to increase Rafale production capacity. The target for 2026 is to reach a rate of three aircraft per month, with potential for further increases to satisfy the backlog of 220 fighters.
In contrast to the defense sector, the Falcon business jet division faced significant industrial hurdles. The company delivered 37 Falcon jets in 2025, missing its target of 40 aircraft. While this is an improvement over the 31 units delivered in 2024, it marks another year of missed expectations.
CEO Éric Trappier has previously highlighted the complexity of the current industrial environment. In remarks cited alongside the results, management pointed to late component deliveries that forced the company to perform “gymnastics on the assembly line” to complete aircraft. These bottlenecks remain the primary constraint on civil deliveries.
Despite production difficulties, demand for business jets showed resilience. The company recorded orders for 31 Falcon jets in 2025, an increase from the 26 ordered the previous year. However, the civil backlog contracted slightly, dropping from 79 aircraft in 2024 to 73 at the end of 2025.
Looking ahead, Dassault Aviation provided confident guidance for 2026, signaling an intent to overcome supply chain friction and accelerate deliveries.
The company also noted that its 2025 results and 2026 guidance do not account for potential new U.S. tariffs, which management warned could impact the competitiveness of Falcon jets in the North American market.
The 2025 results underscore a strategic shift in Dassault Aviation’s gravity. For decades, the company balanced itself on two legs: civil and defense. Today, the defense leg is doing the heavy lifting. The backlog disparity, 220 Rafales versus 73 Falcons, suggests that for the medium term, Dassault is effectively a defense contractor with a business jet division, rather than a balanced aerospace conglomerate.
The “gymnastics” required to build Falcons highlights a broader industry vulnerability. While the Rafale supply chain appears more insulated, likely due to sovereign prioritization by French suppliers and government backing, the civil supply chain is exposed to global volatility. If the company cannot stabilize Falcon production rates in 2026, it risks losing market share to competitors like Gulfstream and Bombardier, who are aggressively pushing their own new models. Sources: Dassault Aviation: 2025 Annual Results Financial Release
Dassault Aviation 2025 Results: Rafale Surges While Falcon Faces Supply Chain Headwinds
Financial Performance Overview
Order Intake and Backlog
Defense Sector: The Rafale Powerhouse
Civil Aviation: Supply Chain Struggles
2026 Outlook and Guidance
AirPro News Analysis
Sources
Photo Credit: Dassault Aviation
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