May 1 (Reuters) - Brazilian planemaker Embraer ( ERJ )

is exploring options for a new narrowbody jet model

to challenge the market dominance of Boeing ( BA ) and Airbus

, the Wall Street Journal reported on Wednesday.

Internal studies conducted by Embraer ( ERJ ) 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 ( ERJ ), currently the world's third-largest jetmaker and

specializing in regional and business jets, was not immediately

available for a comment.

Embraer's ( ERJ ) 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 ( BA ) 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 ( BA ) "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.