Embraer does not perceive any serious threat from new regional aircraft in Asia and Russia but has expressed concern over government funding for their development.

Commercial aviation president Paulo Cesar said the Sukhoi Superjet, which has just entered service, and the aircraft under development in China made the market "more challenging".

"One thing that concerns us is the level of government support being provided to the new manufacturers," he said, adding that Embraer wants to see a "level playing field".

However, he pointed out that it would "take a while" for the airframers to become global players.

"Aircraft must be reliable - it takes time for that," said Cesar.

Embraer believes the regional turboprop market is too crowded and its commercial product development strategy is still focused on a possible larger jet, depending on the level of competition it might encounter.

Cesar said that the Brazilian manufacturer "from time to time takes a look" at the turboprop sector.

"Our view is that it's not a large market and there are two well-established manufacturers. A third one is may be a little too many," he added.

Embraer regional jet rival Bombardier is looking at the prospects for a 90-seat turboprop, and European turboprop specialist ATR (chalet B345) is doing the same.

Cesar said that Embraer is looking towards the end of 2011 or beginning of 2012 for a decision on how to evolve its product line.

"It's important to know what Boeing's going to do, and know how much competition is in the segment up to 150 seats," he said. "We want to know more about competition in the segment above our E-Jets.

"We're looking at larger aircraft - taking a look into that market. But we have to know very well what's being offered by others."

Embraer is to release a new market forecast in the next few weeks but, Cesar added, the airframer's outlook will not be vastly different from last year. "We have the same vision of the market going forward," he said.

Source: Flight Daily News