Embraer is mulling the development of a plane that could compete with Boeing’s 737 Max models
If Boeing $BA doesn’t get its act together in the next decade or so, Airbus won’t be the only plane-making competitor it will have to worry about. The Wall Street Journal reports that Brazilian manufacturer Embraer is mulling the development of a plane that could compete with Boeing’s 737 Max models.
Ever since a door plug blew off an Alaska Airlines-operated 737 Max 9 in January, Boeing has been struggling to keep up production and deliveries amid scrutiny from regulators and the Justice Department. CEO Dave Calhoun has already announced he will retire at the end of the year because of the mess.
Airbus has been licking its chops and, in some cases, moving in on Boeing customers. United Airlines will lease dozens of Airbus A321neo planes because it has had to wait so long for the similarly-sized 737 Max 10s that it has on order.
Embraer’s planes are generally smaller than the kind that Boeing and Airbus make. Its “executive aviation” private plane division brings in about a quarter of its revenue, according to its latest annual report. The first jet it made that can seat more than 50 passengers — its 170/190 aircraft, which has a capacity of 118 — was not certified until 2004 and is still its most spacious offerings. (Delta’s “Delta Connection” regional air service uses them.) The 737 Max 10 can seat as many as 230 passengers.
Though Boeing’s woes might have created an opening, building and launching a new plane is a difficult, time-consuming, and expensive process that could take years and tens of billions of dollars. Embraer denied any such plans to the Journal.
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