Embraer mulls options for new narrowbody jet model, WSJ reports

May 1 (Reuters) - Brazilian planemaker Embraer is exploring options for a new narrowbody jet model to challenge the market dominance of Boeing and Airbus , the Wall Street Journal reported on Wednesday.

Internal studies conducted by Embraer have determined that the company has the technological know-how and manufacturing capability to develop a next-generation narrowbody aircraft, which would be its first in that segment, the report said, citing people familiar with the matter.

Embraer, currently the world's third-largest jetmaker and specializing in regional and business jets, was not immediately available for a comment.

Embraer's plans are in their infancy and no final decision has been made but the company has been laying the groundwork, including assessing potential payload and range requirements, the Journal report said.

Planemakers invest billions of dollars into developing new fuel-efficient highly complex jet models, which can take years to enter the market.

Boeing CEO Dave Calhoun had said in late-2022 the company would focus on cash rather than developing a successor to its best-selling 737 MAX family of jets amid its recovery from overlapping crises.

Calhoun, who is stepping down as CEO at the end of the year after another safety crisis at the planemaker, said last month Boeing's "next leader has to be prepared to make smart long-term decisions and get the development programs right".

"When you get big development programs wrong, you pay a price, and you pay it for a long time, and I know an awful lot about that," he had said on a post-earnings call. (Reporting by Abhijith Ganapavaram and Shivansh Tiwary in Bengaluru; Editing by Shilpi Majumdar)