The eccentric reducer orientation problem is one of those engineering questions that comes up again and again without ever seeming to be totally resolved. I believe the reason that it is never properly resolved is because, except in really extreme cases, it does not matter much.
I have seen pump suctions with the reducer flat side down, or with a concentric reducer, working just fine. The theory, as I learnt it many years ago, is that if there is a possibility of air entrainment then you put the flat side up. And if there are solids or two phase liquids present you put the flat side down.
In my opinion, unless there is a very long perfectly horizontal section feeding straight into the suction of the pump air entrapment will not cause problems. I would love to hear from someone who resolved a pump problem that was definitely linked to a reducer being installed in the wrong orientation. I've never seen or heard of it myself. I agree with Zapster that the air would be pulled through the pump.
Air entrapment is a very different beast from cavitation. The damage that results from cavitation is not due to the bubbles themselves. It is caused by the localised high pressure "implosions" as the bubbles collapse. Air bubbles drawn into a pump would not collapse and would therefore not cause cavitation. The bubbles may cause the pump to run rough, but is not uncommon for pumps in the cane sugar industry to run "on the snore", where they continually draw the suction level down until they pull air into the pump.
I would also like to agree with JJPellin that you should consider the case of the two pumps running simultaneously, even if the idea is that they are actually to be a duty pump and a standby. Operators often believe that if some flow is good, then more flow must be better so if they can run the two pumps together they will.
regards
Katmar