Embraer (EMBJ) and India's Adani Defence & Aerospace said Tuesday that they have signed a memorandum of understanding to collaborate on aircraft manufacturing, aerospace supply chain, aftermarket services and pilot training in India.

The partnership will aim to establish an assembly line and a phased increase in local staff to advance India's Regional Transport Aircraft program, the companies said.

This potential partnership will combine Embraer's engineering and aircraft building expertise and Adani's aviation footprint, which already includes airport, aerospace manufacturing, flight services, and training, the companies said.