Brazil is the second largest buyer of private jets in the world, and their number in the country is so high that the already existing private airports aren't enough for them. Learn more about this market in this article.
The private jet market in Brazil is in expansion, and the forecast is that, in the next 10 years, it will move around BRL 20 billion. The country is the main target of sales in Latin America, since it's the place where most millionaires "appear". In 2012, it was the 11th in worldwide ranking, with over 165 thousand people who owned more than BRL 1 million.
ABAG or Associação Brasileira de Aviação Geral, the Brazilian association of general aviation, pointed out that there was an increase of 16% on the fleet of jets in Brazil from 2012 to 2013, from 623 to 724. The forecast, however, is that the jet market will only start growing on the continent by 2016, due to the devaluation of Latin America’s currencies against the United States' dollar, which tend to increase in the whole area during 2014.
The country has 772 operational executive jets, which makes it the third largest on the list, only behind the United States and Mexico. Almost 10% of these are from Embraer’s model Phenom 100. Brazil also counts with over 13,000 vehicles that are dedicated to non-commercial aviation, 3,600 of them only in the state of São Paulo.
Embraer is the Brazilian aerospace company which stands for Empresa Brasileira de Aeronáutica. It’s the world’s third largest aircraft manufacturers, which, by the third trimester of 2013 had 124 jets ordered, summing USD 17.8 billion. Apart from these, Embraer’s backlog during the whole 2013 year counted with 1,362 requests for airplanes, and over 838 ordered units could be added to that list. Its most searched (and purchased) airplanes are the models E190, E170, and E195, which counted for almost 900 units ordered in 2013.
Embraer has facilities outside Brazil, in the United States, China, Portugal, France, and Singapore. North America and Europe are the main markets of the company, representing 31% and 24% of the total revenue, respectively. China and Brazil represent 14% each. The forecast of the group for the Brazilian market is that from 2014 to 2023, between 490 and 530 units of executive jets are sold, reaching an amount of USD 8.4 billion in the period. More than that, the potential for the whole Latin America would be of 860 executive jets at the same time, summing USD 15 billion.
According to Embraer, Brazil is the second largest buyer of executive jets in the world, only next to the United States. Some exhibitions and fairs contribute to the increase of the sales in the country, as new models are being launched, costing millions of reais.
The airport of Congonhas, in São Paulo, is the main destination of landings and arrivals of jets in Brazil. However, according to Infraero, the 5th largest airport in operation in Brazil, in spite of not having regular airlines, is Campo de Marte, another airport in the city of São Paulo. It's aircraft operation is based on helicopters and private jets, these last ones representing 60% of the total of the planes, surpassing the number of aero taxis, instruction, police and medical use, and entrepreneurial use.
Due to the high competition between jet owners, prices for parking in Campo de Marte's hangar doubled from 2008 to 2012. At least 317 new vacancies were available by 23 hangars, to add to the 217 available in the patio. Just to have an idea, the amount of rent per month for the private jet hangar at this airport is around BRL 18,000.
There are projects to build private airports, which could accelerate the market in the country. São Paulo is due to have, at least, a new private airport by the end of 2014, to decrease the number of arrivals and departures in Congonhas and in Campo de Marte. At Guarulhos Airport, there aren’t operations of general aviation.