E-NEWS UPDATE-VOLUME 19 NUMBER 1123

BRAZIL TAKES OFF

Is the cover story in the November 14-21 issue of The Economist. The coverage includes a full page section in Leaders and a 14 page special report on business and finance in Brazil. Much too long to cover in this publication, but some of the sub-titles in the Leaders' section as well as in the special report are worth mentioning. In the Leaders "Brazil Takes off" ; "Now the risk for Latin America's big success story is hubris"; "At last economic sense"; "National champions and national handicaps". And from the special report on business and finance "Getting together at last": Brazil used to be all promise, now it its beginning to deliver; "Breaking the habit": A brief history of Brazilian meltdown; " Survival of the quickest": Frequent crises have made for  banks and nimble financiers; "Arrivals and departures": Foreigners are investing in Brazil, Brazilian companies are going shopping abroad; "Condemned to prosperity": Brazil has learned to love its commodity sector; "The self-harming state": Companies are squeezed between an obstructive government and black-market competition; "A better today": Brazil's growing middle class wants the good life, right now; "Two Americas": Brazil and the United States have more in common than they seem to.

Definitely an incredible, in-depth article on the country's success story. To read the 'must read' article go to www.economist.com A great piece of reporting, both the problems and the success!

AVIANCA: WORLD-CLASS QUALITY

Is the title in the November 16 issue of Latin Business Chronicle by Walter T. Molano, head of research at BCP Securities, which begins with the statement: Avianca confirms that Latin America has the talent and resources to provide world class quality and services". The article relates the Colombian national carrier's history when the airline was on the brink of bankruptcy in 2004 and when German Efromovich placed his bid for the airline of $64 million assuming liabilities and promised to modernize the fleet. He also invested $2.5 billion in new aircraft and equipment. The rest is history: Efromovich not only saved the airline but has now formed a holding company which is owned in part by Avianca, TACA, Aerogal and Ocean Air and is on his way to creating a major airline group. The case of the Avianca/TACA group confirms that Latin America has the resources and talent to provide world class quality and services. The article can be found at www.latinbusinesschronicle.com. Way to go.

Other news, briefly

Mexico's president, Calderon, projecting $48.5 billion investment in infrastructure

At the inauguration of the new highway in central-western Mexico, the president, Felipe Calderon, announced that $48.5 billion will be invested in infrastructure projects during the next year. Investments - which include both private and public - have reached 5% of the GPD thus far in Mexico. Stay tuned.

AeroSur launches B747-400 nonstop flight to Madrid from Santa Cruz, Bolivia

The newly leased B747-400 has begun four-time weekly nonstop service between Santa Cruz, Bolivia and Madrid, Spain. According to the Bolivian airline's CEO, Humberto Roca, this is part of the carrier's expansion plans which involve additional aircraft to its fleet. Way to go, Humberto.

The economic climate is improving in Latin America

The Index of Economic Climate (ICE) report, prepared every quarter by the Getulio Vargas Foundation (FGV), is based on the economic climate of the region. It announced that the index has grown to 5.2% in the quarter, the highest in the last ten years. Brazil, Peru and Uruguay have all passed to "a boom phase" according to the report. Stay tuned.

Pluna launches new nonstop service to Foz de Iguazu

The new nonstop between Montevideo and Foz de Iguazu was launched on November 18. This is sixth destination it now serves in Brazil which includes Rio de Janeiro, Sao Paulo, Curitiba, Florianopolis and Porto Alegre. Way to go, Matias.

Argentina has confirmed an order for 20 Embraer RJs

The contract is signed by the president of Argentina, Cristina Kirchner, and Brazil's Luis Lula da Silva. The order includes 14 ERJ 190s and 6 ERJ 170s and will be operated by Austral. The fleet renewal for Aerolineas/Austral includes B737-700s as it returns its B737-200s. Stay tuned.

Peru to invest $34.5 million in tourism promotion

The Peruvian minister of Foreign Trade and Tourism, Martin Perez, announced that the investment will generate more than 2 million tourists in the next six years, over and above its present level of 1.8 million of tourists. Tourism presently generates $2 billion annually. Way to go - viva Peru.

Delta has launched daily nonstop flights between Atlanta and Quito, Ecuador

The new daily service was launched in November. It is also increasing its three-time weekly service to Guayaquil from Atlanta to a daily flight in December. The yanks keep coming.

The ATA reported that passenger revenue declined in October

The Air Transport Association of America reported that passenger revenue, based on a sample group of carriers, fell 15% in October. This is the 12^th consecutive month that passenger traffic revenue declined from the previous year. Passenger revenue declines extended beyond the US particularly in the trans-Pacific and trans-Atlantic regions