Embraer mulls construction of larger aircraft
06 Nov 2008
Brazilian aircraft major, Embraer, the world's third largest aircraft manufacturer after Boeing and Airbus, yesterday reported a 70.5% drop in Q3 net income. It also said it was considering building a larger aircraft that could compete with rival Bombardier's CSeries.
Embraer CFO Antonio Luiz Pizarro Manso said that the company was "studying the development of a larger plane," the manufacture of which "could be carried out in partnership or not." The comment holds significance in light of the fact that Airbus CEO Tom Enders is currently in Brazil and said he intended to visit Embraer's main factory.
"We're always engaged in talks, but there is nothing specific at the moment," Embarer's Manso said.
He struck a note of caution saying that Embraer's "strategy is to wait a bit" before taking a call on whether or not to build a larger aircraft.
Embraer also released its first market forecast for China, which projects demand for 875 new regional aircraft over the next 20 years. The projection said that demand will comprise 120 30/60-seat aircraft, 295 with 61-90 seats and 460 with 91-120 seats.
