BRASILIA (Reuters) - Brazil's Embraer SA (>> Embraer SA), the world's third-largest commercial planemaker, on Monday announced the launch of a fourth prototype of a next-generation narrow-body jet slated to enter service in 2018.

The E190-E2 is the first aircraft in Embraer's regional E-Jet lineup with new engines and wings aimed at improving fuel efficiency by at least 16 percent. Embraer said the four prototypes have already recorded over 650 flight hours.

Embraer is also expanding the size and range of its largest commercial jet, the E195, whose next generation enters service in 2019, posing a direct challenge to the new C Series produced by rival Bombardier Inc (>> Bombardier, Inc.).

(Reporting by Silvio Cascione; Editing by Bernadette Baum)

Stocks treated in this article : Bombardier, Inc., Embraer SA