Brazil Aviation Industry
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Introduction:
As per 2012 Brazil is the 6th largest economy in the world. Brazilian airline market is the most dynamic and changing. The country is the ninth largest oil producer in the world, with many oil reserves still being discovered in its coastal area. Compared to other countries, Brazil is experiencing an economic boom due to the rising oil prices. The growth in economy and GDP supports the growing aviation industry. The aviation industry produces jets, business aircrafts, military aircrafts, helicopters etc. Brazil economic growth and the passenger traffic are expected to double in the next ten years due to the upcoming World Cup and Olympics games. The most well-known Brazilian manufacturer is Embarer. Embarer is the third largest air craft manufacturer in the world. Brazils firms are highly integrated in to the global aerospace supply chain. They have formed joint ventures to handle risk management with foreign players. When Embarer became more successful lots of foreign companies moved to brazil to better serve the customer. There are significant foreign investments in Brazilian maintenance, repair, and overhaul industry, with GE, Rolls-Royce, Pratt & Whitney Canada, and Goodrich among the manufacturers operating MRO facilities in-country. Brazilian government is open to foreign direct investments. United States is the number one foreign direct investor in Brazil
Booming Brazilian Aviation Industry:
There are number of reasons for the significant growth of the Brazil aviation industry,
They are listed as follows.
Average economic growth rate of Brazil is 5% per year, which triggers average disposable income level of people driving the demand of air travel.
Low cost carriers are a significant reason for the growth of aviation industry.
The continent sized country which is 3,286,482 sq miles3 makes air travel a crucial necessity.
Brazil government facilitates opportunities of international aviation players.
Over 200 million population of the nation.
Almost 70 airports are congested and are in urgent need of an upgrade as the country prepares to host the 2014 World Cup and the 2016 Summer Olympics in Rio.
Brazil Aviation Market Overview
Embarer is the most dominant player of the Brazil aviation market. Embarer is ranked as the third largest aviation industry in the world. The aviation industry of Brazil deals with all aspects of the sectar. Brazils has 165 airports and the commercial aviation market is primarily domestic(88.7% in 2011). The major international service is split between South America, Europe, and the USA. Over the past