Embraer pins hopes on re-tendered US jet bid Embraer said it expects a cancelled US Air Force contract for light attack aircraft to be re-tendered "within weeks" in a deal seen as crucial to the defence ambitions of the Brazilian aircraft producer. Embraer's bid to sell 20 of its Super Tucano jets to the US for use in Afghanistan comes as the world's third largest commercial jet maker is looking to grow its defence sales by nearly 10 per cent this year. This is about twice the rate that the company's overall business grew last year. "They [the US Air Force] are saying they are going to release a new request for proposal within weeks," said Luiz Carlos Aguiar, the head of Embraer Defence and Security, in an interview. Although small by US military standards - worth an initial $355m for 20 aircraft, rising to possibly $1bn - the air force light attack contract would be a showcase deal for Embraer. Not only would it represent Brazil's first chance to produce attack aircraft for the world's most powerful air force but it would also open the door to other members of the North Atlantic Treaty Organisation for Embraer's growing range of aircraft and defence systems. Embraer is looking to its burgeoning defence division, which it expects to rise to one quarter of sales by 2020 from about 14 per cent last year, to make up for slower growth in the recession-hit commercial jet market. Embraer and its US partner Sierra Nevada Corporation last year won the air force contract to supply the turboprop aircraft, which can carry smart bombs, rockets and other weaponry and are designed for fighting insurgents and drug gangs. But the decision was challenged by rival bidder, Kansas-based Hawker Beechcraft, leading to its abrupt cancellation by the air force in February, citing problems with documentation in the bidding process. "If they keep the same requirements . . . we think we will have a great chance to win again," Mr Aguiar said. Embraer reported a net loss for the final three months of 2011 of R$171.6m ($94.4m) compared with a profit of R$208m a year earlier after provisioning for the possible return of aircraft from a key customer, American Airlines, which filed for bankruptcy in November. Despite the loss, the company's stock rose after the results after it forecast that its backlog of orders would remain nearly constant at $15.4bn on new orders as the US economy recovers. Mr Aguiar said the company expected defence sales this year of $950m compared with $868m last year. The defence order backlog had risen from $600m in 2006 to $3.5bn now. The company was developing new products, ranging from a new military transport aircraft, the KC-390, to unmanned aerial vehicles and surveillance and other systems. But he warned that the air force could not drag its heels on restarting the process for the Super Tucano or the US military budget allocation for the project would expire. They need to decide before September 30, the end of the fiscal year. They need to take this decision to start working, the money is there, available," he said.