Embraer Drops Plans to Build Mid-Range Planes

Brazilian aircraft giant Embraer SA (IW 1000/644) said it is dropping plans to build 130- to 160-seater planes, and instead will focus on smaller jets with 70 to 120 seats, a sector in which it is a market leader.

"We have carried out market studies, spoken to several clients ... and we do not see any economic justification for this plan" of building such regional aircraft, said Paulo Cesar Silva, who heads the group's commercial aviation division.

Airbus and Boeing Co. (IW 1000/49) already have taken a large part of the short-haul and medium-haul markets with their A320 Neo and 737 Max, respectively. Canada's Bombardier Inc. (IW 1000/222) also is entering the market.

Embraer, the world's third-biggest aircraft maker, will concentrate instead on its line of smaller jets.

"We will re-engine our line of E-jets, in order to maintain our leading position on the 70- to 120-seat aircraft type," said Cesar Silva.

The first aircraft that are re-engined to consume less fuel are expected to enter into service in 2018, but their new motors have not yet been picked, he said.

Embraer estimates that it has 43% of the regional-jet world market, ahead of Bombardier, which claims 28%.

Copyright Agence France-Presse, 2012