Not wanting to cede ground to its rival, Embraer is looking for a move into the larger jet segment as well. However, its new planes are meant to capture a greater piece of the 70-120 passenger segment, a combination of the existing regional segment and the lower end of the C Series segment. Reuters is reporting that Embraer SA (NYSE:ERJ) is looking to fill this segment with a next generation version of its larger series of E Jets. In this way, Embraer is not developing a completely new plane and instead modifying an existing model with updated technologies and more rows of seats in a plane expected by 2018. This strategy has met success at other manufacturers such as The Boeing Company (NYSE:BA), which has received solid sales for its next generation 737s and the latest 737MAX.
Larger planes, more competitors
The Boeing Company (NYSE:BA) and Airbus are the strongest players in the widebody and larger narrowbody segments, and this presence has earned them top positions at the Paris Air Show as investors and airplane enthusiasts search out the latest aeronautic technologies. But regional jet manufacturers Bombardier, Inc. (TSE:BBD.B) and Embraer SA (NYSE:ERJ) are moving into territory at the smaller end of The Boeing Company (NYSE:BA) and Airbus’ markets. Both regional jet manufacturers have seen success in their current markets, and the skies ahead contain the potential for greater revenues by taking a piece out of the lower end of the biggest manufacturers’ segments. Will the planes take off on time? At this point we don’t cannot know for sure. But whether or not one is an investor in Bombardier, Inc. (TSE:BBD.B), Embraer, The Boeing Company (NYSE:BA), or Airbus, the paths taken by these two regional jet manufacturers could change both the aerospace manufacturing and airline industries over the next several years.
Alexander MacLennan owns shares of Bombardier, Inc. (TSE:BBD.B). The Motley Fool recommends Embraer SA (NYSE:ERJ)-Empresa Brasileira.
The article Keep an Eye on this Regional Jet Maker Showdown originally appeared on Fool.com.
Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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