Airbus Sees Opportunities in Brazil

Posted 23/11/2011

According to the recently released Airbus Global Market Forecast (GMF), Brazil will require 701 new passenger aircraft of more than 100 seats between today and 2030.  The 501 single-aisle, 174 twin-aisle aircraft and 26 very large aircraft have an estimated value of $82 billion,” said the manufacturer.  By 2030, Brazil, the largest and fastest growing passenger market for Airbus in Latin America, will become the fourth largest domestic air travel market in the world following the United States, China and India with an annual growth rate of 7.4 per cent,. according to the Airbus GMF.

Brazil is currently ranked fourth in the world in terms of seats on departing flights, offering twice as many seats today than a decade ago.  During the same time span, the country’s international and domestic air travel more than doubled, and as of 2010 Sao Paulo became the biggest gateway city for international travel to Latin America.

Looking ahead, the growth is only expected to continue and between 2010 and 2030, economic indicators suggest the country’s GDP is expected to skyrocket 144 per cent, 20 per cent higher than the Latin America average.  This is being driven by strong economic growth; an increased propensity to travel by air, driven by rapid growth of a travelling middle class and a growing tourism economy.

“Brazil has become one of the world’s top 10 markets for new passenger aircraft in terms of aircraft deliveries over the next 20 years,” said Rafael Alonso, Executive Vice President Latin American and the Caribbean, Airbus.  “With international traffic to and from Brazil doubling over the past decade and showing no signs of slowing, Brazilian carriers have a tremendous opportunity to gain greater market share.”

Interestingly, Airbus also sees a requirement for some very large aircraft sales in Brazil during the forecast period, suggesting that Gol, TAM Airlines or a new industry start-up will become customers for either the Airbus A380 on the Boeing 747-8I, the only two aircraft in this particular size category.

In the wider Latin American market, Airbus foresees a 20-year demand for more than 2,000 new passenger aircraft, including 1,653 single-aisle, 334 twin-aisle and 41 very large aircraft, estimated at approximately $200 billion.  Globally, by 2030 some 27,900 new aircraft valued at $3.5 trillion will be required to satisfy future robust market demand, says the manufacturer.

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