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Tue, Nov 15, 2011

Embraer Pulls Back From Potential Challenge To Boeing, Airbus

Will Re-Engine Its E-Series Regional Jetliners Rather Than Develop New Narrow-Body Airplane

Embraer's president of Commercial Aviation Paulo Cesar Souza e Silva said that the company plans to re-engine its E-Series regional jetliners and will not enter into a direct competition with Boeing and Airbus for a share of the single-aisle narrowbody market. Silva's remarks came during a Sunday news conference at the Dubai Air Show.

Dow Jones Newswires reports that Silva said a variety of companies, including GE, Pratt & Whitney, CMF International, and Rolls-Royce are all in the running for the new E-Jet engines. He said changing the powerplant may also require changes in the airplanes' wings, but that is "still under evaluation."

Silva said that the company is basing its decision in part on a projected $14 billion market for regional jets in the Middle East. "Our target here is to keep our leadership on the segment through developing new features on the E-Jet but also thinking what's new in terms of a second generation E-Jet," Silva said. He also said the company had considered a 130-160 seat competitor for Boeing and Airbus narrowbody jets, but Boeing's decision to follow Airbus in re-engining its workhorse airliner made that a far less attractive option.

Silva said there was simply not a strong business case for building a larger jet, though some clients have asked for a larger version of the E-195. He said the company still plans to deliver the first of the re-engined E-Jets to be delivered in 2018.

FMI: www.embraer.com

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