UPDATE 1-Bombardier not studying bigger version of CSeries jet - sources

(Adds quotes, details, industry context and background)
By Allison Lampert and Tim Hepher
MONTREAL/PARIS, May 4 (Reuters) - Canada's Bombardier
BBDb.TO is not looking at building a bigger version of its
CSeries jetliner, three people close to the company said on
Wednesday.
There has been persistent analyst and media speculation that
Bombardier would add a third member of its slow-selling
108-130-seat jet family to compete with best-selling Airbus
AIR.PA and Boeing (NYSE:BA) BA.N models that carry at least 150
people.
But despite earlier suggestions that Bombardier could
enlarge its new jet to boost sales, the so-called 'CS500'
version, which could cost up to $750 million to develop, is not
being considered, the people said.
"It is not on the table," one said, asking not to be
identified.
Bombardier last week scored a much-needed sale of 75 CS100
CSeries models to Delta Air Lines (NYSE:DAL) DAL.N .
Delta's new chief executive said it was potentially
interested in anything larger that Bombardier could produce.
Although Bombardier has toyed with the idea of building a
bigger plane in the past, now is not the right time to consider
breaking into the cut-throat 150-seat category as it tries to
build on Delta's backing of its existing model, the people said.
Some Canadian media have reported a larger CSeries could
form part of a $1 billion package of federal support being
negotiated between Bombardier and Canada's government.
Chief Executive Alain Bellemare said last week Bombardier's
focus was on its 108-seat CS100 and 130-seat CS300 models and a
new business jet.
"I think that, for us, is plenty. Our business case is all
built around that: the CS100 and the CS300. It's funny that
people are already thinking about what's next," he told Reuters.
Bombardier has long argued there is a promising market in
the 100-150-seat segment, just below the best-selling Airbus and
Boeing models, but has suffered years of disappointing sales.
One source familiar with Bombardier's thinking said it would
be "suicidal" for the company to launch a CS500 anytime soon,
because it would thrust the cash-strapped planemaker into direct
competition with Airbus and Boeing.
Industry strategists say the two giants would relish drawing
the CSeries into their core market, where their high volumes and
pricing power could give them a strong advantage despite the
Canadian plane's partly newer technology.
A second source close to the program said it would cost $500
million to $750 million to stretch the CS300.
The CS300, however, has the capability to be expanded if the
market needs it, the program head said last year.