Aerospace: Dogfight

Amid a down market in regional jets--with recovery on the way--Bombardier and Embraer show their teeth

Executives of Bombardier Aerospace seemed a bit defensive when they traveled from their Montreal headquarters to a recent aviation fair in Sao Paulo. Just east of Brazil's business capital are the headquarters of Embraer, Bombardier's smaller but aggressive rival. The two companies had fought for a decade over the burgeoning global market for regional jets--the ones with 20 to 100 seats that fly routes like Chicago to Cedar Rapids, Iowa. But at the Sao Paulo show, Embraer opened a new front in the battle, flaunting its first executive jet, the attractively priced $20 million Legacy.

"There is really no competition" between...

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