This Brazilian planemaker denied reports it wants to kick Boeing while it's down and build a new jet to compete with the 737

• The WSJ reported Embraer is looking to build a new aircraft to compete with Boeing and Airbus.
• The planemaker denied this, but added it "certainly has the capability."

The Brazilian planemaker Embraer has denied reports it wants to capitalize on Boeing's misfortune by working on a new aircraft.

On Wednesday, The Wall Street Journal reported that Embraer is exploring options for a new narrowbody plane to compete with the Airbus A320neo and Boeing 737 Max.

Citing people familiar with the matter, the Journal said Embraer conducted internal assessments which found it has the ability to develop such an aircraft.

The firm is known for making smaller jets like the four-abreast Embraer E175, which is typically used by regional carriers like Republic Airways, operated on behalf of legacy airlines.

Embraer's ambitions for a larger next-generation jet firmed after Boeing's recent crisis in the wake of the Alaska Airlines blowout, the Journal reported.

But an Embraer spokesperson told Reuters it doesn't have plans for a new cycle of spending.

"Embraer certainly has the capability to develop a new narrowbody aircraft. However, we have a young and very successful portfolio of products developed in recent years, and we are really focused on selling those products and making Embraer bigger and stronger," they added.

The Brazilian firm has a market cap of around $5 billion, while Boeing and Airbus are over $100 billion companies.

But as Boeing loses some customers' trust and suffers delivery delays amid the turmoil that saw its CEO resign, there could be more room for minor players to disrupt the duopoly. Airbus' A320neo-family is so popular that it has a backlog of over 10,000 aircraft.

China could also provide an alternative to the main two planemakers' narrowbody jets. The Comac C919 entered service last year, and while it has only received orders from Asian airlines so far, Boeing's problems might make carriers consider it more closely.