🚀 ProPicks AI Hits +34.9% Return!Read Now

Embraer eyes making turboprop plane to rival ATR, Bombardier

Published 2017-09-14, 07:23 p/m
© Reuters.  Embraer eyes making turboprop plane to rival ATR, Bombardier
AIR
-
LDOF
-
EMBR3
-
BBDb
-

SAO PAULO, Sept 14 (Reuters) - Brazilian planemaker Embraer SA EMBR3.SA is considering the development of a new turboprop passenger plane, the company said on Thursday, potentially returning to a segment dominated by the Franco-Italian ATR and Canada's Bombardier Inc BBDb.TO .

Embraer, the world's third-largest commercial planemaker, said it recently consulted with airlines about "potential opportunities in the turboprop market," but added any decision was far off.

The idea represents a possible sharp reversal for a company that tailed off making turboprops in the 1990s to focus on regional jets - a segment it now leads globally, generating just over half of its revenue.

"It is important to emphasize that Embraer is far from any decision to launch a new turboprop program and the process is in the evaluation phase," the company said in an emailed statement. "This is an early, but key step, in establishing if there is a business case for a modern turboprop platform."

Embraer took a similar stance earlier this decade, but chose to hold back. The company will roll out the next generation of its commercial E-Jet lineup in the next few years, freeing up research and development resources for a new family of products.

Between Bombardier's Q400 and the market-leading ATR, co-owned by Airbus SE AIR.PA and Leonardo SpA LDOF.MI , there are about 100 turboprop airliners made each year.

Embraer's head of commercial aviation, John Slattery, told the Aviation Club in London that existing passenger turboprops were "decades old," creating an opening for an entrant with a new airframe and engines, according to the Wall Street Journal, which first reported the news on Thursday.

ATR Chief Executive Christian Scherer told reporters in Paris on Wednesday there was limited room in the market for a third Western turboprop manufacturer. Demand was strong in Asia and Latin America and picking up in the United States, he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.