The Fuerza Aeroespacial Colombiana (FAC) has finalized a contract with Embraer to acquire two KC-390 Millennium multi-mission aircraft, making Colombia the first Latin American nation outside of Brazil to select the transport jet. Announced on August 4, 2026, the procurement is designed to modernize Colombia’s airlift and aerial refueling capabilities as the country phases out its aging legacy fleet.

In a press release issued Tuesday, Embraer confirmed the agreement includes the two Commercial-Aircraft, specialized mission equipment, an integrated services and support package, and a localized offset program. The acquisition aligns with a broader military modernization initiative led by Colombian President Gustavo Petro. According to reporting by Reuters, this fleet upgrade gained political urgency following the crash of a Colombian Lockheed Martin C-130 Hercules in March 2026, an Accident that resulted in 69 fatalities and prompted calls to accelerate the replacement of older airframes.

Fleet interoperability and technical specifications

The KC-390 Millennium features a maximum payload capacity of 26 tons and a maximum cruising speed of 470 knots. Embraer designed the aircraft to perform a variety of missions, including cargo and troop transport, medical evacuation, search and rescue, and aerial refueling.

A primary driver for the KC-390 selection is its planned integration with Colombia’s incoming fighter fleet. On November 15, 2025, Colombia signed a contract with Saab to acquire 17 Gripen E/F fighters. Embraer and Saab maintain an existing strategic Partnerships that includes co-producing Gripens in Brazil. Embraer stated the new KC-390s will feature full connectivity to operate seamlessly alongside the Gripen aircraft.

Bosco da Costa Junior, President and CEO of Embraer Defense & Security, stated the KC-390 will significantly expand Colombia’s operational capabilities. He noted the agreement reinforces a 35-year partnership that began with the FAC’s acquisition of the Embraer EMB-312 Tucano and later the A-29 Super Tucano.

Delivery timeline and financial scope

While Embraer did not disclose the exact financial terms of the contract in its official announcement, the FAC indicated the deal features fixed prices intended to protect the national budget. Defense publication Breaking Defense estimates the total value of the two-aircraft agreement at between $336 million and $366 million.

Deliveries of the new transport aircraft are scheduled to occur over a two-year period. According to Breaking Defense, the first KC-390 Millennium is expected to arrive in Colombia in 2029, with the second aircraft following in 2030. Until then, the FAC will continue to rely on its remaining C-130 Hercules aircraft and Israel Aerospace Industries Kfir fighters, both of which are slated for eventual retirement.

AirPro News analysis

Securing Colombia as the 13th global customer for the KC-390 Millennium represents a critical regional breakthrough for Embraer. While the Manufacturers has successfully exported the aircraft to European and Asian operators, breaking into the Latin American market outside its domestic borders validates the platform as a direct competitor to the Lockheed Martin C-130 in the region. We view the interoperability with the Saab Gripen E/F as a decisive factor in this procurement. The tragic March 2026 C-130 accident clearly catalyzed a procurement cycle that often faces bureaucratic delays in Latin American defense budgets, forcing the Petro administration to prioritize immediate transport modernization.

Sources: Embraer

Skyeton, Inc., the United States subsidiary of Ukrainian-tied Skyeton Holdings, will establish its first flagship U.S. manufacturing facility in Fayetteville, North Carolina, localizing production of its Raybird unmanned aerial system (UAS).

The North Carolina Department of Commerce announced the $3.1 million investment on July 27, 2026. The project will create 162 jobs and establish a domestic supply chain for a drone platform that has accumulated significant operational experience in Eastern Europe.

Localizing Defense Production and the Raybird UAS

The Raybird is a long-endurance UAS utilized extensively in Ukraine for deep reconnaissance, border monitoring, and 3D mapping. According to the state commerce department, the platform has logged 350,000 combat-proven flight hours.

“Expanding our manufacturing footprint in North Carolina is about more than opening a new facility. It’s about strengthening America’s defense industrial base, creating high-quality American jobs, and delivering combat-proven capabilities closer to the warfighters we exist to serve,” said Rigoberto (Quito) Sáez, CEO of Skyeton, Inc.

Facility Specifications and Site Selection

Skyeton evaluated potential sites in Nevada and Oklahoma under the economic development code name “Project Odesa” before selecting North Carolina. The company will occupy a 28,479-square-foot building at 223 Dedication Drive in Fayetteville. This location returns a portion of the former Black & Decker power tool factory campus to active industrial use.

Economic Impact and State Incentives

The Fayetteville facility is projected to add $11.4 million in annual payroll to the local economy. The 162 new positions will offer an average annual salary of $70,759, which exceeds the current Cumberland County average of $49,382.

Grant Funding and Local Support

To facilitate the expansion, Skyeton received a $500,000 performance-based grant from the One North Carolina Fund. Local incentives were approved by the City of Fayetteville and the Cumberland County Board of Commissioners in June and July 2026.

“We’re proud to welcome Skyeton to a state with such a proud military tradition and advanced manufacturing base,” North Carolina Governor Josh Stein stated in the press release. “By combining our manufacturing workforce, the skillsets of our transitioning military personnel, a central East Coast location, and a strategic transportation infrastructure, North Carolina continues to rise to the top ranks as the best place to do business, especially in the aerospace and defense sectors.”

North Carolina Commerce Secretary Lee Lilley echoed the sentiment, noting that state investments in research and industry partnerships have created an environment where defense innovation companies can support national security while growing their business operations.

AirPro News analysis

The decision by Skyeton to establish a U.S. manufacturing base highlights a growing trend among defense aerospace companies with combat-proven technology in Ukraine. By localizing production in the United States, foreign-tied defense firms position themselves more favorably for U.S. Department of Defense procurement contracts, which often require strict domestic supply-chain compliance. Choosing Fayetteville places the facility adjacent to Fort Liberty, providing the company direct access to a workforce of transitioning military personnel with relevant tactical and aviation experience. We expect to see similar localization efforts from other international UAS manufacturers seeking to convert overseas operational success into long-term U.S. defense contracts.

Sources: North Carolina Department of Commerce

Hermeus achieved its first uncrewed supersonic flight on May 26, 2026, when the Quarterhorse Mk 2.1 reached Mach 1.21 over the White Sands Missile Range in New Mexico. The flight testing was conducted from Spaceport America.

The milestone flight, detailed in a series of company press releases, coincided with a $159 million contracts modification from the Defense Innovation Unit (DIU) announced on May 28, 2026. The expanded agreement raises the total contract ceiling to $219 million, funding further high-Mach flight and high-speed payload release demonstrations for the U.S. Air Force (USAF) and U.S. Navy (USN).

Supersonic flight and rapid prototyping

The Quarterhorse Mk 2.1 reached supersonic speeds on its third test flight. The event occurred exactly 364 days after the maiden flight of the company’s first aircraft, the Mk 1. Hermeus is utilizing a rapid iteration strategy, with the Mk 2.1 serving as the first of three planned F-16-scale supersonic uncrewed aircraft. Subsequent variants, designated Mk 2.2 and Mk 2.3, are slated for future testing.

The Quarterhorse Mk 2.1 is powered by a Pratt & Whitney F100 engine. Former Chief Executive Officer AJ Piplica stated that the U.S. Department of Defense is closely monitoring the program’s speed and development timeline.

“This flight demonstrates a pace of execution that is extremely rare in modern aviation,” Piplica said. “This program is about moving high-Mach capability out of the lab and into an operationally relevant environment. By delivering flight-ready aircraft and demonstrating payload release at speed, we will prove this technology can create a decisive military advantage on a timeline that matters.”

Defense Innovation Unit contract expansion

The financial backing from the DIU underscores growing military interest in operationalizing hypersonic and high-Mach technologies. The $159 million modification secures funding for flight tests scheduled throughout 2026 and 2027.

Major General Joe “Solo” Kunkel, Military Deputy for the DIU, emphasized the strategic necessity of the technology for future military operations.

“As you look towards the future, and the military problems we’re facing, the issues are generally around time and distance, and how do you get to these far-off places at a timeframe that matters,” Kunkel said. “I care about the warfighting capability, providing advantage to our partners and us in the fight, and making sure that we can walk into every fight with swagger.”

Executive leadership transition

To manage the transition from prototyping to scaled operations, Hermeus restructured its executive team in mid-2026. Zach Shore assumed the role of Chief Executive Officer on June 1, 2026, succeeding co-founder AJ Piplica, who transitioned to Executive Chairman. The company subsequently appointed Sameer Rao as Chief Financial Officer on July 22, 2026.

Shore noted that the company is managing more parallel lines of effort than at any previous point in its history. He stated his focus remains on delivering capabilities to the military by executing flight campaigns and scaling the business effectively. The leadership changes follow a $350 million Series C funding round, bringing the total private capital raised by Hermeus to more than $500 million.

AirPro News analysis

The 364-day turnaround between the maiden flight of the Quarterhorse Mk 1 and the supersonic flight of the Mk 2.1 validates the hardware-rich, rapid-iteration approach Hermeus has championed. We view the $159 million DIU contract modification as a strong signal that the U.S. Department of Defense is willing to bypass traditional, decades-long procurement cycles in favor of venture-backed aerospace models. By utilizing proven propulsion systems like the Pratt & Whitney F100 engine in uncrewed, scalable airframes, Hermeus reduces developmental risk while accelerating the timeline for fielding high-speed payload delivery systems.

Sources: Hermeus