Embraer says only room for 4 global plane-makers

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SAO PAULO, Brazil, May 23 (Reuters) - Brazil's Embraer (EMBR4)(ERJ), the
world's No. 4 manufacturer of civil aircraft, said there was only room in
the world for four big aircraft-makers after the collapse of Germany's
Fairchild Dornier.
The crisis in the aviation market caused by the September 11 attacks would
leave Chicago-based Boeing Co. (BA) and Airbus, made by the European
aerospace group EADS (EAD), fighting it out for the large jet market.

"There will not be a third company to compete with them," Embraer director
of investor relations Antonio Luiz Manso said at a meeting with analysts.

The same was happening in the smaller regional aircraft market where
Canada's Bombardier (BBDa) and Embraer were going toe to toe, he said.


"Fairchild will disappear or be bought by Bombardier," Manso said.

The Canadian company agreed earlier in May to a request from the German
government to carry out a technical evaluation of insolvent Fairchild
Dornier's stalled flagship 728 regional jet program. It has said it will
decide on any further interest after the evaluation is completed.

The Sept. 11 attacks on the United States hit orders for new aircraft from
the four manufacturers. Last week Embraer posted a 19.4 percent drop in
first-quarter net profit as a result of the drop in demand.


©2002 Reuters Limited.

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