Brazilian aircraft manufacturer Embraer is reportedly exploring options for developing a new narrowbody jet model aimed at competing with industry giants Boeing and Airbus, according to a report by the Wall Street Journal on Wednesday.

Internal studies conducted by Embraer have indicated that the company possesses the technological expertise and manufacturing capacity necessary to undertake the development of a next-generation narrowbody aircraft. The potential venture would mark Embraer's first foray into the narrowbody segment, a significant departure from its current specialisation in regional and business jets. However, Embraer has not yet issued an official comment regarding these reports.

Although Embraer's plans are still in the preliminary stages, the company has been laying the groundwork for the project, including evaluating potential payload and range requirements. Such endeavours typically involve substantial investments and can take several years to come to fruition.

The decision to pursue the development of a new aircraft comes at a pivotal time for the aviation industry. Boeing, one of the leading manufacturers of narrowbody jets, has faced challenges in recent years, including the grounding of its 737 MAX fleet following two fatal crashes. In light of these setbacks, Boeing's CEO Dave Calhoun has emphasized the importance of prioritizing financial stability over the development of new aircraft models.

However, with Embraer contemplating entry into the narrowbody market, there could be significant implications for the competitive landscape. If successful, Embraer's venture could disrupt the market dominance currently enjoyed by Boeing and Airbus, providing airlines with additional options for modern and fuel-efficient aircraft.

(With Reuters inputs)