e-News® | The NEWS Company…São Paulo, 10 August 2015 : According to research by aircraft broker ArcosJet, Brazil, the biggest business jet user in BRICS, is also the only country to have a mature fleet structure with hundreds of light jets forming the base and fewer large aircraft toward the top. It is also the only BRICS member to have a major domestic business jet manufacturer – although surprisingly Russia operates more Embraer Legacy aircraft than Brazil.
– Despite the economic downturn that affected all BRICS countries, while hitting Brazil and Russia most severely (Oxford Economics predicts just 2.6 and 2.4% GDP growth in 2016—2020 respectively), ArcosJet experts believe that these markets still hold much promise even in the short term. With 772 registered business jets, Brazil has the third-largest fleet worldwide after the U.S. and Mexico and will continue to be a leading market in South America. With its abundance of light jets, which constitute the bulk of this fleet, it can also become a “shopping centre” for customers from other BRICS countries looking to acquire preowned aircraft.
Today, Brazil is very different from its counterparts, especially Russia and China, in that its fleet structure closely resembles the mature U.S. market with many light jets forming the base and fewer large aircraft toward the top. In fact, there are just 68 large and long-range business jets in the country (among which Embraer Legacy and Dassault Falcon models are most popular), while the remaining 704 aircraft are mainly of the light and midsize classes. As buyers in Russia and China are beginning to appreciate the value and use of light jets (not lastly because of the need to cut costs) Brazil will serve as a great example for small and medium businesses in these countries and a source of attractive preowned offers.
Brazil also remains the only country in BRICS to be a leading civil aircraft manufacturer, with Embraer retaining its strong positions in business jet deliveries both worldwide and domestically. Unlike Russia, a former aviation superpower struggling to regain its positions, or India and China, where civil aviation is still in its early stages, Embraer has delivered a total of 855 business jets since 2002 and 116 of them in 2014, according to the General Aviation Manufacturers Association (GAMA). 154 Embraer executive jets are operated in Brazil.
Surprisingly, there are more Embraer Legacy aircraft in Russia than in Brazil (35 VS 18). On the other hand, while there are just 7 light jets on the Russian registry today, there are over 150 Phenom airplanes registered in Brazil. According to ArcosJet, these numbers and ongoing contacts with private and corporate owners in BRICS countries show that there is much potential in cross-border cooperation. While some owners are looking to upgrade from their light and midsize jets, others are beginning to see the value of smaller aircraft. ArcosJet will be concentrated on matching these buyers and sellers in its mid-term marketing strategy.
If you need more data on BRICS markets or would like to set up a meeting during LABACE, please contact Ivan Veretennikov on +7 926 326 0050 or via ivan.veretennikov@arcosjet.com
