AIN sat down with Flávio Píres, director general of Brazilian business aviation association ABAG, on the eve of the Latin American Business Aviation Convention and Exhibition (LABACE) in São Paulo, Brazil, to learn how the association has prepared for the event’s return and the prospects for business aviation in Brazil. LABACE is returning today after three years without holding the fair due to the Covid-19 pandemic.
In the interview, Píres said ABAG has “prepared a super event to mark the occasion. We have a business aviation market experiencing a good moment all over the world, and it is no different here in Brazil, where we have business aviation aircraft movement numbers for 2022 already way above 2019. The segment's fleet is also growing rapidly, and maintenance providers are reporting a significant increase in the number of aircraft served, another indicator of the sector's dynamism."
He also discussed the distribution of space and a better flow of people moving through the static display and internal exhibit areas at Congonhas Airport, the long-standing site for LABACE. Pires expressed “high expectations” for this year’s show, noting that there are 74 confirmed exhibitors and 95 brands, including Embraer, Dassault, Gulfstream, Boeing, and TAM Aviaçao Executiva.
A look at business aviation operations in Brazil during the past few years shows some significant growth, according to statistics from WingX Advance. In 2021, business aviation jets and turboprops flew roughly double the number of operations than in pre-pandemic 2019—52,895 versus 26,390. Business jets alone flew 34,062 operations in 2021, up from 20,940 in 2019.
However, according to WingX managing director Richard Koe, “the growth in flights needs to be tempered with the increased coverage we are getting as ADS-B networks expand.” As more aircraft become ADS-B Out equipped, their easier tracking means the number of operations grows, thanks to more accurate measurement of their activities.
“For example,” Koe explained, “the approximate density increase of receivers was up 78 percent in 2022 versus comparable 2019 for South America. So it’s not ‘pure’ growth, albeit, still growth in total activity versus 2019. Which would not surprise us, given that airline capacity was severely restricted during Covid, bringing wealthier customers to business aviation.”
Year-to-date, 2022 business aviation activity in Brazil is up 174 percent compared to the same period in 2019. This year is off to a strong start with 38,574 business aviation operations in Brazil, up from 28,040 in the same period in 2021—a 38 percent increase.
“Our expectations are the best possible for LABACE this year,” said Junia Hermont, COO of Líder Aviação, which claims to be Latin America’s largest business aviation firm, with 19 operating bases, more than 1,500 employees, and a fleet of more than 50 aircraft. “The current moment is very positive for business aviation, and we have seen growth in several areas of the company’s operations. This event will bring us back into direct contact with many customers and aviation lovers simultaneously, after experiencing so many restrictions during the pandemic.”
Anderson Markiewicz, Líder’s aircraft sales director, pointed to a 150 percent increase over pre-pandemic numbers in purchase and sale transactions, for both new and used aircraft. “Now we will have the first LABACE after this impressive growth…a great opportunity for interested parties.” In the past 12 months, the company sold 20 aircraft, which contributed to 37 percent revenue growth for the first half of 2022 compared to the same period in 2021.
A traditional LABACE exhibitor and the Honda Aircraft representative in Brazil, Líder this year is displaying one of the three HondaJets in its fleet. There are five HondaJets operating in Brazil, although the model only became available a few years ago and Líder expects that number to grow rapidly.
Campo de Marte Airport, the main general aviation airfield in metropolitan São Paulo, will be one of the highlights in an auction of airport properties scheduled for August 18. Brazil’s federal government is promoting the auctions as part of the Seventh Airport Concessions Round.
The airfield was involved for 90 years in a political dispute and, later, a judicial dispute between the state of São Paulo and the national government. While the dispute was in litigation, several mayors and governors of São Paulo made plans to redevelop Campo de Marte. In parallel, the companies operating at Campo de Marte, as well as the entire local business and general aviation community, pressed for maintenance of the airport because the alternatives were distant and limited.
Finally, when Law 14.409/22 was enacted, the dispute came to an end. The result is that the government will get 1.8 million sq m (20 million sq feet) of Campo de Marte and the city 4,500 sq m, where it intends to build a park and an aviation museum. The airport area owned by the government is the segment that will be auctioned along with another business and general aviation airport—Jacarepaguá in Rio de Janeiro. For the lot including these two airports, the minimum initial bid is R$141.4 million ($27.6 million) and the total investment value for the entire contract is R$1.7 billion.
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