Bloomberg News

Embraer to Await Boeing Move Before Deciding on 150-Seat Plane

June 06, 2011

Andrea Rothman

June 6 (Bloomberg) -- Embraer SA, the world’s fourth- largest planemaker, reiterated that it will wait to see what Boeing Co. does in the single-aisle aircraft market before deciding whether to build a 150-seat plane.

“We plan to wait to see what Boeing decides,” Paulo Cesar de Souza e Silva, president of Embraer’s commercial aviation unit, said in an interview yesterday in Singapore. “We believe it’s important to have every piece of information about our competitors for us to make a sound decision.”

Embraer may build a 150-seat plane in an attempt to break Airbus and Boeing’s stranglehold on the single-aisle market that features their best-selling planes. Boeing has said it may make an announcement later this year on whether it will develop an all-new plane to replace its 737 after Airbus announced plans to revamp its rival A320 by giving it new engines.

The new A320neo, due to enter service in 2015, will have the option of engines from United Technologies Corp.’s Pratt & Whitney or from CFM International, a venture between General Electric Co. and France’s Safran.

Embraer is looking at the same engines for its proposed 150-seat plane, and it may also consider Rolls-Royce, said Silva, who’s attending the annual general meeting of the International Air Transport Association. London-based Rolls could offer an open-rotor engine design, he said.

“I think Rolls-Royce can also make a good proposition in terms of the design of the engine,” he said.

--Editors: Neil Denslow, Dave McCombs

To contact the reporter on this story: Andrea Rothman in Singapore at aerothman@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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