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Boeing projects strong sales growth in Latin America
A recent study by Boeing’s commercial aviation division forecasts that Latin American airlines will need 1,680 new aircraft over the next 20 years. That makes Latin America the fastest growing region after China. Air traffic will rise 6.9 per cent in the period, according to Boeing, well above the world average of 4.9 per cent and not far behind China’s 8.8 per cent.

Air Perú to start operations in April
Set up in 2006, Peru’s newest airline starts flying domestically and internationally on April 1, 2007. Air Perú has signed an agreement to lease seven aircraft from Primaris Airlines, which will also provide technical support, maintenance and pilot training. It promises to cover 17 domestic and foreign destinations in the first year of operations.

Aerolíneas Argentinas plans to expand fleet
Argentina’s national carrier has announced it has a business plan that includes expanding its fleet to 80 aircraft in three years, in response to increasing domestic and international traffic.

New airline for Colombia
Aerolíneas Sudamericanas expects to be certified at any moment by Colombia’s Superintendencia de Transporte and to start domestic and international flights in March. It has four Boeings ready to provide low-cost flights within the country and to other parts of South America.

Brazil has five new airlines
On December 14, 2006, Brazil’s National Civil Aviation Agency (ANAC) issued accreditation documents (CHETA) to the following five airlines certifying that they are in full compliance with the pertinent legislation, regulations and safety requirements: • Air Minas Linhas Aéreas Ltda. • Master Top Linhas Aéreas Ltda. • NHT Linhas Aéreas Ltda. • SETE Linhas Aéreas Ltda. • VRG Linhas Aéreas S.A. (the new Varig)

GOL aims to cover entire Southern Cone
Tarcísio Gargioni, VP for marketing and services at GOL Linhas Aéreas Inteligentes, said in a newspaper interview that Brazil’s low-cost airline will cover the entire southern portion of South America.

Competition among Brazilian airlines set to intensify this year
In a recently published report on the aviation crisis in Brazil, Fitch Ratings mentions the return of Varig and more aggressive positioning by OceanAir and BRA. The latter two companies still have limited activities but are moving ahead with relevant expansion plans, according to the agency.

Sustained growth in the civil aviation sector, which over the past three years has expanded at an average of 18% per year, will be possible only if substantial infrastructure management measures and investments are implemented over the long run, Fitch stresses. Temporary measures to smooth the current crisis will not be enough.

Fitch believes the current crisis, which began in October 2006, will encourage important changes in the sector as it has highlighted the need for more government investment in infrastructure. TAM and GOL will probably report slightly reduced profitability in the fourth quarter, but even so Fitch expects both carriers’ earnings for 2006 to be their best ever.

Sources: Aerolatinews, Business Travel, Report Américas, Jornal do Brasil

33 airlines operate in Brazil, from regular and non-regular carriers to international, national and regional domestic airlines and airfreight carriers.

The Brazilian fleet comprises more than 9,800 units, of which:
• 4,000 private-use aircraft
• 950 helicopters
• 700 executive jets

53% growth in domestic passenger traffic was achieved by the commercial aviation industry between 2004 and 2006.

Infraero manages 68 airports throughout Brazil.

More than 1,000 companies are taking advantage of this growing market and supplying products and services to the commercial aviation industry.

Continuous growth of the Brazilian economy has intensified the use of these aircraft and led to an increasing need for maintenance, repair and overhaul (MRO).

Sources: ABAG, AIAB, ALTA, ANAC/DAC, Aviação em Revista, Flap Internacional.

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