(Adds details of Iran aerospace deals)
By Priscila Jordão
SAO JOSE DOS CAMPOS, Brazil, Feb 25 (Reuters) - Brazilian
planemaker Embraer SA EMBR3.SA will extend the range of its
biggest commercial aircraft, executives said on Thursday as they
rolled out the first of the re-engined E-Jet planes to compete
with Bombardier Inc 's BBDb.TO new C-Series.
The next-generation E195-E2 will have increased fuel
capacity giving it a maximum range of 2,450 nautical miles (nm),
up from a prior design with a range of 2,000 nm, said Paulo
Cesar Silva, Embraer's head of commercial aviation. The E195-E2
will have three more rows of seats than the current series.
That would put Embraer's biggest jet in more direct
competition with Canadian rival Bombardier's C-Series, whose
smallest aircraft has a maximum range of 3,100 nm.
Embraer and Bombardier have battled in recent decades over
the regional jet market with smaller planes than the narrow-body
aircraft of industry leaders Boeing (N:BA) Co BA.N and Airbus Group
SE AIR.PA , which usually carry 100 to 200 passengers. Both
smaller rivals are now pushing deeper into the over-100-seat
segment.
Embraer's approach has been more gradual, building on the
success of its E-Jets in the 70- to 130-seat segment with more
fuel efficient engines and slightly more capacity.
The revamp starts with the E190-E2 unveiled on Thursday,
which enters service in 2019, and will proceed with the E195-E2
entering service a year later.
Bombardier has spent more than $5 billion to design the
C-Series from scratch, with 100 to 160 seats and long-distance
capacity rivaling Boeing and Airbus narrow-body aircraft.
Boeing has beat out Embraer and Bombardier for two orders
from United Continental Holdings Inc UAL.N this year with its
low-end 737 aircraft seating around 100 passengers. The
longer-range design of the E195-E2 suggests Embraer is not
backing away from the fight.
Separately on Thursday, Embraer Chief Executive Frederico
Curado said the Brazilian planemaker is in early talks with
Iran, with a focus on commercial aviation, following the end of
international sanctions.
A Brazilian presidential aide with knowledge of the
negotiations told Reuters this week that Iran is interested in
buying 50 Embraer airliners along with taxis, buses and trucks
made in Brazil, following a trade mission to Tehran in October.
Iran signed a deal for 118 Airbus jets in January and this
month it struck a deal for up to 40 turboprop planes from
Franco-Italian producer ATR. Boeing also said last week it had
gotten U.S. clearance to enter talks with airlines in Iran.