Report Assesses Market Development And Long-Term Growth

Having suggested earlier in the year that "U.S. Carriers should look to the South for growth", OAG's latest Aviation Market Report released Tuesday takes a closer look at the opportunities presented by the aviation market in Brazil. This new report explores how tapping into new oil & gas reserves is fuelling aviation as well as GDP growth in South America's largest market.

The discovery of large reserves of oil & gas and high oil prices has driven economic and GDP growth in Brazil. This growth is witnessing the rise of a wealthier middle-class, with higher social expectations and an increased appetite for air travel. As a result, air travel in Brazil is expected to double over the next decade making it an attractive destination for foreign airline operators and investors.

The aviation market in Brazil has already seen capacity growth of 39% over the last five years, the majority of which has been taken on by the expanding Low Cost Carrier operators. Today the commercial aviation market split (between international and domestic traffic) is heavily weighted towards the domestic at almost 89%, which should be unsurprising given the context that as the fifth largest country in the world, and only slightly smaller in size than the US, Brazil covers nearly half of the South American continent.

"The exceptional growth of the Low Cost Carrier sector across Latin America and the Caribbean continues to capture everybody's attention," said Ron Weiland, VP Americas OAG. "As we saw in the early days of the US market, the growing affluence of the middle-classes creates a huge demand for air travel. The aviation market in Brazil represents a viable and sustainable investment opportunity for the long-term to those who venture south."

FMI: www.oagaviation.com