Embraer Says It Needs Time to Develop Airbus, Boeing Jet Rival

Embraer is carefully considering whether to develop a new commercial aircraft to rival offerings from Airbus and Boeing. Arjan Meijer, president and CEO of Embraer Commercial, stated that the company will take its time before committing to such a large investment. The development of a new aircraft is estimated to cost tens of billions of dollars, a substantial drain on Embraer's resources, even with its recent record revenue and order backlog.

Embraer, known for its regional jets like the E-Series, previously abandoned plans for a next-generation turboprop. While Meijer acknowledged the growing demand from the market and employees for a new commercial plane, he emphasized that the company is still far from making any commitments.

Embraer's cautious approach reflects the significant financial risks associated with developing a new aircraft. The company must carefully weigh the potential benefits against the costs before making a decision. The decision will have long-term implications for Embraer's competitive position in the commercial aviation market.

Embraer's current strategy focuses on its existing product line and maintaining its position in the regional jet market. The company is also exploring opportunities in other areas, such as defense and security. A move into the larger commercial aircraft market would represent a significant shift in Embraer's strategy.