Latin American Sales, There Are 307 Airs for the Most Part

a special report by Kirby J. Harrison and Elizabeth Johnson N O S I R R A H . J Y B R I Business Aviation K in

Optimism is slowly Latinbecoming reality as business jet America sales climb to ﬁve short of highest total in the past decade.

For years the business aviation market in Latin aircraft. According to Favio Robello, the com- little more than 1,100 are Raytheon airplanes–King America was distinguished by little more than pany’s v-p of Latin American sales, there are 307 Airs for the most part. But the company has had wishful thinking as manufacturers watched signs Bombardier airplanes in service in the region, some success recently with its Premier IA light of interest that translated only rarely into signed with the Learjet line making up the largest share. jet and sold two at the FIDAE 2006 international contracts. Between 1994 and 1999, they saw the There are 101 in Mexico and 82 in Brazil. airshow in Chile earlier this year. business jet fleet for 15 countries drop from 954 to “I’ve just completed six years with Bombardier,” Ernesto Rois-Méndez is president of the Aso- 769 airplanes. It was the low point, and if sales said Robello, “and I can tell you that last year was ciación Latinoamericana de Aeronáutica (Latin representatives were not perched on ledges of tall the best year we’ve had in Latin America.” American Aeronautical Association). He is a care- buildings, they were at least considering other Cessna holds a major market share in Latin ful observer of the Latin American market and is employment. But that was the way things were, America, with 362 Citations in service. There relatively blunt in his assessment of the region’s and things change. are also 236 Caravan turboprop singles in serv- business aircraft market. Seven years later, the Latin American busi- ice in the region. The largest Citation fleet is in “What is amazing is that with instability and ness-jet fleet is back up to 950-plus airplanes in Brazil, where there are 135 in service. In 2004, unrest so typical in Latin America, there is such 16 countries, and dealers have been heard to Cessna delivered 14 Citations in Latin America; growth in business aviation,” said Rois-Méndez. grumble that they could sell more airplanes if the last year the company delivered 21. “And this Elections inevitably have a negative effect on busi- airplanes were available. year we’ve already delivered 11,” said a ness aircraft sales as potential customers choose to Compared with the U.S. and Canada–where the spokesman in July. wait and see how the political–and, by association, business-jet fleet totals some 16,000 airplanes– the economic–winds blow, he explained. Latin America is a relatively small market on the Jet Sales Are on the Upswing Two factors consistently inhibit the market for global map. For most aircraft manufacturers, it is but Turboprops Rule business aircraft in Latin America–political and the fourth largest market, behind North America, There are about 62 Gulfstreams–from G100s to economic instability, and they are inextricably Europe and the Middle East. G550s–in service in Latin America. “We now linked. There are a number of recent examples. Although relatively small, however, it is not in- have five G550s flying in Latin America,” said a In Mexico there was the July 2 presidential significant, with an annual increase in the total spokesman, who also noted that for the Savannah, election in which Manuel Lopez Obrador lost in a fleet size since 1999 of nearly 30 business jets a Ga.-based OEM, the market has assumed an im- hotly contested battle to Felipe Calderon. year. And in 2004 and 2005, the fleet grew by 35 portance equal to that of the Middle East. In Venezuela last year, President Hugo Chavez, and 40 aircraft, respectively. Raytheon Aircraft is heavily represented in a self-avowed Marxist, claimed the U.S. was Bombardier is a major player in the Latin Latin America but primarily in the turboprop preparing for an invasion of his country, and more American market, at least in terms of numbers of market. Of the 22,000 turboprops in the region, a recently was preparing to sign an arms deal with

28aaAviation International News • September 2006 • www.ainonline.com Russia valued at some $3 billion. The U.S. has banned military sales to Venezuela, and some Embraer’s bizav no longer a one-trick pony observers believe a ban by Venezuela on U.S. civil imports could follow. Brazil is preparing for presidential and con- Two years ago Embraer had one product for the busi- VLJs. He maintains that there is an aging fleet of light jets gressional elections later this year, and the na- ness aviation market, with the Legacy, an executive/VIP or that current operators will need to replace in the near term tion’s efforts to reach an agreement on natural gas corporate shuttle version of its ERJ 135 regional jet. But and that there are thousands of owner-operators of turbo- prices with neighbor Bolivia collapsed in July. that is ancient history, said Embraer executive v-p of exec- prop aircraft and heavy piston twins. Brazil has in recent years become a major ex- utive jets Luis Carlos Affonso. “We have also had inquiries from various charter com- porter of natural gas. In May last year the Brazilian airplane manufacturer an- panies. We expect to deliver a product that will create a In Chile, a presidential runoff election in Janu- nounced the formation of its executive jets division headed customer loyalty that will keep them in the Embraer fold as ary this year saw Michelle Bachelet the winner, by Affonso, and revealed a $235 million investment program they move up,” he said. after which the Chilean congress saw fit to reduce to produce a very light jet (VLJ) and a light jet. By last fall While the Lineage is designed for that niche market the presidential term of office from six years to four. it had announced the between large busi- The situation in Venezuela is “interesting,” ac- formal launch of the Phe- ness jets such as the cording to some aviation handling services. nom 100 VLJ and Phe- Global Express and Baseops International said it has seen a “huge” nom 300 light jet. And still larger ACJ and decrease in flights from the U.S. to Venezuela in this past May, at the Eu- BBJ, Affonso said he the past two years. The company also reported a ropean Business Aviation expects it will appeal slight decline in business aviation travel to Latin Convention & Exhibition to current owners and America in general over the past year, but an in- in Geneva, Embraer un- operators of aircraft crease in the number of flights to Venezuela origi- veiled the Lineage 1000, in those categories. nating in Europe. a $40.96 million (typically Those moving “up” On the other hand, Universal Weather reports equipped), 19-passenger from a Gulfstream or only “a slight decline” in the number of flights derivative of its E190 air- Global Express will get from the U.S. into Venezuela and an increase in the liner, designed to fill a a much larger cabin number of flights into Latin America in general. niche between the Boe- with little or no loss in A spokesman noted that requests for continuing ing Business Jet and the performance, while travel in Venezuela beyond international arrival Gulfstream G550. those moving “down” point Simón Bolivar International airport, or to In an interview with will get an airplane that remain in Venezuela more than 72 hours, were AIN last month, Affonso costs about $15 million requiring between five and seven days for approval. noted that the Phenoms and the Lineage 1000 are just the A computer rendering of less than a BBJ. And he added that crews flying into Simón Bolivar beginning. “Over the years, as part of our strategy for Embraer’s Lineage 1000 “We believe we can shows a spacious cabin. were discovering that with the closure of the deteri- growth and diversification,” he said, “we plan to introduce deliver a finished, typi- orating four-lane main bridge connecting Caracas new aircraft to complete the Embraer executive jets line.” cally equipped Lineage 1000 for $41 million.” Affonso with the Caribbean coast and the airport added at This strategy, he added, is complemented by “a busi- said that with two auxiliary fuel tanks in the belly, the least two hours to the ride into the city center. ness plan devoted to customer support and service.” The projected range is 4,200 nm with eight passengers. Alberto Rosales, a trip support specialist with company expects to expand its existing three factory serv- Additional baggage storage at the aft end of the cabin is Universal Weather, said operations into Latin ice centers at Gavião Peixoto near São José dos Campos accessible in flight. America, and in particular into Brazil, are becom- in Brazil, OGMA near Lisbon, Portugal and Nashville, The company expects to deliver two Lineage 1000s in ing more frequent. “People are feeling more Tenn. Embraer also expects to add to its list late 2008 and three or four in 2009. secure, more comfortable, and they are flying of 17 factory-approved service centers “in the near future.” In the meantime, the Legacy 600 is the only Embraer again,” said Rosales. “We’ve noticed this and it’s The factory service and maintenance center at Alverca, executive/VIP airplane in production, but Affonso notes one reason we opened the new office in São Paulo Portugal, opened in July at a renovated 16,600- sales are “encouraging.” In 2004, 13 Legacy 600s were de- [at Guarulhos International Airport].” sq-ft OGMA hangar. livered and last year that It includes backshops number jumped to 20. Changing Regulations and customer reception This year, he said, the and Irregular Enforcement rooms and will accom- company expects to Regulations remain an issue, not only differing modate as many as deliver 25, followed by from one country to another, but also in terms of two Legacy 600s, one 30 next year. how strictly they are administered from one airport Lineage 1000 or up to At this point, cabi- to another within the same country. eight Phenoms. netry for the Legacy In Brazil, said Rosales, crew visas remain an This summer, as if 600 is produced by issue at some airports, even though the regulations Embraer needed to pro- Nordam and Duncan do not require that pilot and copilot have one. On vide more proof of its in- Aviation in the U.S. and the other hand, officials seem to agree that a flight tent to become a major shipped to São José attendant is not a crewmember and therefore must player in the business dos Campos for instal- have a visa. Bottom line, said Rosales, “Every- aviation market, the lation in a sepa- body should have a visa.” company revealed an rate interior completion At some airports in Bolivia, authorities require executive jets backlog center. The long-term proof of the aircraft’s landing field performance totaling $1.25 billion. strategy, according to after arrival. But at El Alto International in La Paz, That book includes a Affonso, is to move it is required before a landing permit is issued. firm order from Gold Avi- that completion activity In Santiago, customs officials no longer clear ation Services in Fort Lauderdale for five Phenom 100s The cockpits of the Phenom 100 and to Gavião Peixoto, business aviation passengers through the Univer- and options for an additional 10 Phenom 100s or Phenom Phenom 300 are almost identical. where it will be ex- sal office but require that they go through customs 300s. They are to be managed, maintained and chartered panded to handle cabin in the arrivals terminal, which can add an hour or by Golf Aviation. Also on order from the Kipco Group completion work on the Phenom 100 and 300 and the more to the arrival process. “But we did manage to United Aviation are one Phenom 100, one Phenom 300 Lineage 1000. work out an agreement for a private line at the and one Legacy 600. The holding company, with assets Affonso said the company has not yet decided whether terminal for general aviation arrivals, which has throughout the Middle East and North Africa, expects to to outsource for the Phenom 100 and Phenom 300 cabin got it down to about 30 minutes,” said Rosales. take delivery of the Legacy 600 in October and the Phe- components as it has for the Legacy, or to bring the work In Mexico, there is a recent and major change nom 100 and Phenom 300 in 2008 and 2010, respectively. of cabinetry and upholstery in-house at Gavião Peixoto. to requests for landing permits, said Lupe Jensen, Embraer cut metal for the Phenom 100 in June this year As for the company’s overall long-range expectations, a Universal Weather specialist on travel to Mex- and deliveries are expected to begin in mid-2008. Deliver- Affonso said the original business plan was to deliver ico. “Last year, civil aviation in Mexico had a Web ies of the Phenom 300 are expected to begin in late 2009. 1,000 airplanes over the next 10 years, about a 30-percent site on which the user could fill out the landing Affonso disagrees with those who do not see a ready market share worldwide. “Now it appears,” he said, “we Continued on next page u market in Latin America for the Phenom 100 and other will exceed our forecast.” –K.J.H.

www.ainonline.com • September 2006 • Aviation International Newsaa29 Business Aviation in

uContinued from preceding page permit before departure. Now the operator has to ing factors, it is a growing market. Aircraft fleets are have a handlingLatin agent submit Ame the form andrica accom- consistently swelling, but the numbers traditionally panying documents.” lag behind the actual needs of business and indus- Reports on the number of business aircraft in try. This, said Rois-Mendez, suggests steady–if not service in Latin America, despite the best efforts spectacular–room for growth for some time to come. of analysts and marketing experts, create a some- Aircraft manufacturers, buoyed by strong sales what murky picture. in the past couple of years, appear to be anticipat- Rois-Méndez notes that there are a lot of aircraft ing more of the same. with N-numbers based in Florida that belong to owners in Venezuela and Colombia. This, he said, Very Light Jet Makers Poised for Success sometimes reflects an owner’s desire to ensure the As the first VLJs approach certification, Latin resale value of the aircraft by offering a U.S.-regis- American interest in the breed seems to be gath-

tered airplane that has been maintained to FAA ering momentum. Brazilian Cessna dealer TAM N O S I

standards. It might also be the result of high import expects to take delivery of seven Mustangs next R R A H

taxes in most Latin American countries. year and holds market positions for a total of 24. . J

But Rois-Méndez maintains that Latin America The introduction of the Phenom 100 VLJ last B R I has been and continues to be a good environment year by Brazil’s Embraer has also stirred up interest. K for business aviation, and that despite the inhibit- Continued on page 32 u LABACE 2005 drew 4,971 visitors, 87 exhibitors and 16 static display aircraft.

CHC Helicopter Ups Ante In São Paulo Helicopters carry the day in Latin America

With an eye to expanding markets, CHC Helicopter is There is “lots of demand” for civil helicopters in Latin $810,000 typically equipped, it’s about $200,000 cheaper.” extending its presence in Brazil, where demand for offshore America, according to Danny Maldonado, v-p of Latin Enstrom recently added Bringer to its dealership network helicopter support of the oil industry is growing rapidly. American sales for Bell Helicopter. and delivered a 480B to the São Paulo company. A number CHC, a major provider of helicopter services to the global He cited several reasons for the booming demand: new of 480Bs are in service in Mexico, “where it’s an ideal ma- offshore oil and gas industry, revealed last year that it had businesses moving into Latin America; a more stable politi- chine for hot-and-high flying.” Enstrom expects to deliver been granted “an irrevocable option to acquire a significant cal climate and improving economy in many countries; two 480Bs to customers in Costa Rica before year-end. equity position in Brazilian Helicopter Services [BHS]” and expanding offshore oil and gas business; and replacement Mexico City has many of the same transportation prob- that it intended to exercise that option. In July the company of an aging fleet. Those selling their older helicopters are lems as São Paulo and an active and growing helicopter announced that the deal had been finalized, allowing it to generally replacing them with new, he added, and demand fleet, though not yet the size of that in São Paulo. Accord- provide operation expertise exclusively, including safety man- for used helicopters remains healthy. ing to Sinai, the official line is that there are 400 helicopters agement systems, maintenance procedures, technical support, Lionel Sinai, manager of marketing and communications in service in Mexico City. But in a city 7,570 feet above sea flight standards, advisory personnel and general offshore oil for Eurocopter Mexico, generally agrees, at least as far his level, the requirement is for helicopters with exceptional and gas expertise. area of responsibility–Mexico, the Caribbean, Central Amer- hot-and-high performance. BHS is one of the largest helicopter operators in the Brazilian ica and Colombia, Ecuador Sinai described Mexico City offshore sector, employing a team of more than 200 and and Venezuela–is concerned. as a “free-flight” area for heli- operating a fleet of 11 aircraft, including AS 332 Super Puma Most of the demand for copters in which more and Mk 2s and Sikorsky S-76s. The Rio de Janeiro-based operator pro- civil helicopters in Latin more new buildings are going vides services under contracts valued at close to $200 million. America comes from private, up with helipads. “There are According to CHC, the agreement was reached “with the corporate and the offshore oil already 75 helipads, and the intention of establishing a mutually beneficial, long-term rela- and gas industry. sky is filled with helicopters. tionship in the rapidly expanding Brazilian offshore sector. In the larger cities, where They’re like aerial cowboys.” N

traffic backs up for miles and O Meanwhile, he said, in the

Petrobras (Petróleo Brasileiro), Brazil’s federal energy com- S I R

rampant crime prompts se- R wake of two recent crashes–

pany, last year announced plans to triple natural gas produc- A H

curity concerns, helicopter J involving a Bell 407 and an

tion to 100 million cubic meters per day by 2010. Y B

transport is no longer consid- R Agusta 109–the government is I

In June, before it acquired the equity position in BHS, K ered a luxury but a necessity expected to issue flight restric- CHC Helicopter announced it had been awarded a new five- for business executives and wealthy individuals. Eurocopter and AgustaWestland tions in the near future. year contract to provide eight Sikorsky S-76C+s in support of This is particularly true in São Paulo, Brazil’s economic were two of the major Sinai said Bell has the Petrobras operations. Addition of the new aircraft doubles the manufacturers to have heart and a place where a 20-mile trip from Congonhas major market share in Mexico, size of the CHC fleet on contract in Brazil. helicopters at the static display International to the city center can take two hours. “It’s for LABACE 2005. but he noted that Eurocopter’s The Petrobras contract is expected to begin in January, the best city in the world for helicopters,” said Kurt Robin- AS 350B3 is becoming the with aircraft to be phased in over an eight-month period. Total son, v-p of product support at Robinson Helicopter. helicopter of choice for first responders–police, emergency revenue anticipated from the contract is estimated to be While exact numbers are not available, best estimates medical service and traffic patrol, as well as search-and-res- approximately $170 million over five years. –K.J.H. are that the helicopter fleet in São Paulo numbers nearly cue. “In the past three years,” said Sinai, “the B3 has won 1,000. With demand for its product growing in the region, 90 percent of all tenders in those categories.” Eurocopter established subsidiary Helibras in São Paulo. Both companies see a major growth area in offshore The company has its own AS 350 assembly line. Helibras support of the oil and gas industries, Bell with its 15-pas- also operates a training center and maintains an engineer- senger 412 and Eurocopter with its AS 350 and EC 145. ing modifications department. AgustaWestland last month signed a five-year distribution Enstrom, the Menominee, Mich. manufacturer, has been agreement with Aerolíneas Ejecutivas of Mexico. The deal in business for 47 years and began delivering piston single includes an initial contract for five helicopters, including two helicopters in Latin America in the mid-1980s. While the A109 Powers, and options for 37 more over the next five years. company has some 40 piston helicopters operating in Latin “As of right now,” said Maldonado, “there are few regula- America, it’s the company’s only turbine helicopter that is tions that would affect helicopter sales in Latin America,” al- expected to make a real impact on this market. The 480B is though he admitted, “there has been some noise about noise.” a five-passenger turbine single capable of 115 knots. Ac- In general, though, it’s a good market, but focused on a cording to marketing and sales program manager Mike few countries, Brazil and Mexico, and more recently Roer, “It’s about the equivalent of Bell’s 206B3. But at Guatemala. But, said Maldonado, “things change.” –K.J.H.

30aaAviation International News • September 2006 • www.ainonline.com Business Aviation in HeliSolutions sets up shop in upscale mall

Continued from page 30 u On any given day at the ultra-exclusive Daslu shopping the weakened U.S. dollar. “The cost to buy a share The $2.85 million twinjet is expected to enter serv- center in São Paulo, Brazil, the parking lot is filled with in a helicopter has declined by almost 30 percent in ice in mid-2008Latin and Latin AmeAmerican, particularlyrica Mercedes-Benzes, Jaguars and BMWs. It is beyond up- local currency.” Brazilian, customers are likely to be receptive. scale and, for some, redefines pretentious. Another factor is the difficulty in getting around São “I think there is definitely a market for the very Here, customers are not only from among the elite Paulo by car, despite government attempts to limit traffic light jet in Latin America,” said Rois-Méndez. Paulistas, so are many of the sales staff, known as in the city. In total, traffic jams during the peak rush “Those who can afford one will love it.” “daslusetes.” To “work” here is a status symbol of sorts. hours often approach 100 miles, and chronic gridlock He added, however, “As the backbone of an Certain areas are off limits to men. On these floors makes travel by car unpredictable at best. By compari- air-taxi service, the VLJ might be a tough sell, as and in these shops, open only to women, an errant male son, Los Angeles traffic congestion looks like a Sunday- most Latin American countries have only three or visitor is quickly met and firmly escorted out. In places morning drive to church. four major cities to support such a service.” where women stroll Another factor is a casually about clad in growing concern about Manufacturers Pleased with Sales Gains little or nothing as they safety. Despite a de- “We’ve increased our sales this year,” said browse among dis- cline in the number of Bombardier’s Robello, adding that the success plays of Prada and car-jackings and kid- reflects the efforts of a new sales director in Brazil Dolce & Gabbana, nappings in recent and a sales director in Dallas who spends most of men are not welcome. years, executives and his time in Mexico, as well as those of a pre-owned But they are wel- wealthy individuals still aircraft sales director in Florida. come elsewhere in consider the money But, he added, simply selling airplanes does not Daslu. There are well spent. “The fact is, ensure long-term success, and Bombardier is plan- menswear shops, a the sky is much safer ning a new parts depot in São Paulo that will allow Ferrari dealership, a than the ground,” said delivery of parts for any Bombardier aircraft to any yacht sales office, and Andrade. major city in Latin America in about 12 hours. now, a place to pur- No less a factor Bombardier has a field service representative chase a helicopter–or at is an expanding in Brazil, one in Argentina and two in Mexico, least a share in one. infrastructure. Nearly and OceanAir in São Paulo had its validation as And why not? In a every major commer- a company-authorized service facility renewed city where rush-hour cial building in São this summer. traffic is a 24-hours- Paulo has a helipad While the market in Latin America is primarily a-day phenomenon and Andrade noted for small and medium business jets, Bombardier and security is a ne- that to construct a expects to see a growing market for larger aircraft cessity, the helicopter new building without a with legs to match a global economy that more and has become almost as helipad is to risk los- more Latin American businesses are entering. common as the Mer- ing tenants. “The Global is a victim of price at this point,” said cedes-Benz or Jaguar. The airways in São Robello, “but we’re selling more Challengers and In fact, São Paulo Paulo are sufficiently as the Latin American economy moves more and boasts the largest fleet congested that there is more into the export arena, we’re seeing interest in of civil helicopters in a special ATC system Globals as well as Challengers. the world, and they flit from rooftop helipad to rooftop The HeliSolutions fleet now includes divided into zones with “Long-term investments by Latin American in- helipad like dragonflies on mating day. The civil helicop- five Eurocopter AS 350B3 Squirrels airspace corridors link- dividuals and companies spell stability, and these ter fleet in São Paulo numbers, by most estimates, more and a sixth is to be delivered next May, ing various cities and along with a fourth EC 120 Colibri. individuals and companies are looking at outside than 1,000, and there are more than 200 active helipads business districts. markets more than ever.” scattered around the city. Andrade contends HeliSolutions, a São Paulo-based helicopter frac- that in coming years helicopters will increasingly become tional ownership operator, is one of the most recent essential business tools to complement fixed-wing busi- arrivals at Daslu. “We benefit a lot from word of mouth,” ness aviation. said Rodrigo Andrade Sá, president of HeliSolutions, He believes that if commercial aviation continues to “so being in Daslu helps the company to become grow at current rates, business aviation will eventually be more visible.” removed from Congonhas International Airport, relegating Each helicopter has 10 owners who fly an average of it to outlying airports such as Jundiaí, Viracopos and six to seven hours a month. The lion’s share of the com- Guarulhos. This will almost certainly result in an expansion pany’s clients–about 70 percent–are businesses; the re- of helicopter operations between the outlying airports, mainder are individual owners. Congonhas International and various city heliports. Since it was founded in 1999, HeliSolutions has With continued economic growth throughout Brazil, grown quickly and the fleet now totals 11 aircraft–three HeliSolutions has begun expanding beyond São Paulo. Robinson R44 Ravens, three Eurocopter EC 120 Colibris The company already bases three helicopters in Rio de and five AS 350B3 Squirrels. This year the company saw Janeiro, and Andrade believes that demand in the city of 30-percent growth and, according to Andrade, expects Campinas will soon require HeliSolutions to base helicop- similar growth next year. ters there as well. And Riberão Preto, the sugar and HeliSolutions has on order a new Colibri and a new ethanol capital of Brazil, has seen its helicopter fleet grow

Source: Airclaims Squirrel, both of which are scheduled for delivery next to become the third largest in the nation, said Andrade. May. “We would like to have the helicopters sooner, but HeliSolutions is also eyeing other Brazilian markets, in- With 362 in service, Cessna has the largest delivery dates are tight,” he said. cluding Salvador in the northeastern state of Bahia, business-jet ﬂeet in Latin America. A spokesman Andrade sees the fleet composition as unlikely to which has developed into a major center of tourism and said the company strategy is relatively simple, and change. “The Robinson makes sense for urban operations is a center for a number of key industries, including oil the same as it is in the rest of the world–“focus on and is inexpensive to operate,” he explained. “Likewise, and petrochemicals. complete support through our dealer and mainte- because Eurocopter has an assembly plant in Brazil All these factors, assuming continued political and eco- nance network.” through Helibras, [obtaining] parts and maintenance for the nomic stability, suggest to Andrade that HeliSolutions will As for future growth, said a spokesman, “We Colibris and Squirrels is more efficient.” see signiﬁcant growth in coming years. see very strong, growing economies throughout The role of the helicopter has expanded significantly the region and great opportunities for our whole The Case for the Helicopter since the first, a Bell 47D, was introduced into the line of aircraft.” In recent years, business at HeliSolutions has gotten country in 1948. And according to Andrade, the best is Continued on page 34 u a boost from a number of sources, one of which is yet to come. –E.J.

32aaAviation International News • September 2006 • www.ainonline.com Business Aviation in

uContinued from page 32 The TAM facility at Jundiaí price and mission of its large years, said a spokesman, “and Airport nearLatin São Paulo is anAme au- long-rangerica and ultra-long-range we see no reason for that trend thorized Citation service center. aircraft, found a ready market in not to continue [now that] we At 85 strong, the Citation ﬂeet in Latin America when it intro- have aircraft more suited to the N O S

Mexico is substantial, and sup- duced the smaller and less region. Latin America is an im- I R R ported by Centro de Serviçio expensive G100 and G200 in portant market for us.” A H

. J

Avemex in Toluca. 2001. As a result, the Gulf- But like competitor Bom- Y B R I

Gulfstream, traditionally lim- stream fleet in Latin America bardier, Gulfstream is seeing K ited in sales numbers by the has doubled in the last four greater demand for heavy-iron Business aircraft crowd the Congonhas International Airport static display area at LABACE 2005.

TAM Has Big Plans for Little Jets

Brazilian charter operator Taxi Aereo Marila (TAM) believes the future of business aviation in Brazil includes very light jets (VLJs), and lots of them. According to TAM president Rui Aquino, the São Paulo-based company has encountered a strong demand for new aircraft, particularly light jets. TAM has 24 order positions for the five-passenger Cessna Mustang, which is scheduled to be certified during this year’s fourth quarter. The Brazilian company expects to deliver seven Mustangs next year and believes that sales will be even stronger after the arrival of the ﬁrst aircraft. “Our main concern is delivery times,” said Aquino. “There are few aircraft available for delivery in 2007. “This is a great aircraft for Brazil; it can ﬂy 1,000 miles and cover all the key areas of the country.” He added that VLJs are likely to be the greatest impetus for growth in the business aviation market in Brazil in coming years. “Flying is the quickest and most efficient way to cover ground in Brazil, and more business people are coming to real- ize the importance of having their own aircraft,” he explained. In general terms, TAM has an optimistic view of business aviation in Brazil, expecting to sell 15 helicopters, seven Cessna Cara- vans and 10 business jets this year. He also noted that the company plans to expand its maintenance and service facility at Jundiaí Airport. “We were hoping to see strong growth in single-engine aircraft maintenance, but demand for jet [maintenance] has been higher than expected.” –E.J. N I A B

R E G O R Taxi Aereo Marila president Rui Aquino

34aaAviation International News • September 2006 • www.ainonline.com long- and ultra-long-range air- fleet. While service and support in Central America, Mexico and as a market isn’t growing as fast, craft. Not long ago there were a is available at its West Palm the north coast of South America. but Brazil is strong.” handful of GVs in Latin Amer- Beach, Fla.; Dallas; and Long A spokesman at Raytheon Despite all the political, eco- ica. “Now, in less than three Beach, Calif. factory service cen- Aircraft, which supports some nomic and regulatory growth in- years, we’ve sold as many G550s ters, there are authorized line 22,000 turbine airplanes in hibitors, very light jets, larger as there were GVs in the fleet in service providers in Caracas, Latin America, said sales for business jets and turboprops 2003.” And, he added, the total Venezuela; and Santiago, Chile; the Beechcraft and Hawker jets represent a healthy market in fleet in Latin America has dou- as well as an authorized warranty have been strong, “and we ex- Latin America, and manufactur- bled in the last four years. center in São Paulo. The West pect that to continue. ers and vendors are optimistic Gulfstream is also focusing on Palm Beach facility is a three- “Compared with Europe and about the future. –K.J.H. support of its Latin American hour flight from most major cities the Middle East, Latin America Report continues on next page u

LABACE 2006 Cancelled, but ‘07’s in the Works

LABACE 2006 would have been the fourth Latin American Business Aviation Conference & Exhibition. Organizers, including NBAA and Associação Brasileira de Aviação Geral (ABAG), had hoped it would be the largest show to date. The exhibit hall had been moved from the Transamerican Expo center, more than an hour’s drive from the static display at Congonhas Airport, to a Varig hangar space at the airport, neatly consolidating all the elements in a single venue. And organizers were renewing the emphasis on the Latin American aspect of the show. But the air went out of the bal- loon in June when NBAA and ABAG announced cancellation of LABACE 2006, citing an accelerated airport construction project that would dramatically reduce space available for the static display. “NBAA and ABAG are commit- ted to hosting a world-class event that meets the high standards the business aviation community has come to expect of us,” said NBAA president and CEO Ed Bolen. “Un- fortunately, several factors beyond our control make it impossible for us to host such a show this August [and] we see no alternative other than to defer this year’s event.” However, Bolen made it clear in an interview with AIN that the show will go on and that there will be a LABACE next year, “sometime in the third quarter.” While vendors and exhibitors seemed to agree that cancellation of the 2006 show was the only viable solution, many were disappointed. Planning for LABACE 2007 is well under way, according to Bolen, and it will include “changes that would help turn LABACE into the kind of success we have seen at EBACE.” But Ernesto Rois-Mendez, president of the Latin American Aeronautical Association (ALA, Asociacion Latinoamericana de Aeronautica), said, “To expect the same level of success for LABACE that they have with EBACE is not realistic.” –K.J.H.

www.ainonline.com • September 2006 • Aviation International Newsaa35 Business Aviation in Offshore ops propel Líder growth Latin America Brazil’s largest business aviation services pany has no short-term plans to expand its company, Líder Aviação, continues to spread fleet of 15 charter aircraft, Hermont said Líder its wings into new areas and anticipates a rev- has been pleased with an increase in the enue increase of 40 percent this year. number of hours flown per aircraft. “This has been a great year in terms of Líder has also expanded into aircraft man- aircraft sales, charter services and offshore agement services, a move Hermont said has operations,” said Líder director Junia Hermont. posted positive returns. “Businessmen don’t Belo Horizonte-based Líder attributes its have the time to manage all the details of rapid expansion to the growth of offshore gas their aircraft and prefer to outsource these and oil operations in Brazil. Earlier this year, services,” she noted. With the addition the company received $41 million in financing of management services, Líder has seen from the U.S. Export- overall demand for Import Bank to ac- aviation services in- quire six Sikorsky crease substantially. S-76C++s, which will Hermont said the bring the company’s company will also be offshore operations expanding its rela- fleet to 16 aircraft. tionship with Euro- Líder is the largest copter later this year,

offshore helicopter N which could further O T P

charter operator in U add to service-related

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Brazil, and its acqui- J revenues. sition of the six Siko- As for aircraft sales, rskys is part of a strategy to solidify that Líder will buy six Hermont said numbers position, said Líder CEO Eduardo de Sikorsky S-76C++ have been strong this Pereira Vaz. helicopters, like the year to date, with above ship on display at Líder recently signed an agreement with sales of seven air- HAI earlier this year. Brazilian airport management company In- planes and one heli- fraero to expand its operations in Vitória, the copter, and that Líder will surpass last year’s capital of Esprito Santo. With the contract, sales levels of 12 aircraft. “Sales are usually Líder will have its own hangar, which can be stronger in the second half of the year,” she used for offshore operations and executive said. And she added that there is a changing aviation services. “With the recent oil discov- attitude among Brazilian business people with eries in the region, demand for services in respect to aircraft ownership. “We’re seeing a Vitória has been growing fast, and Líder lot of interest from companies that have never wanted to be able to offer a broad range of owned airplanes and [we] believe the industry services to its clients,” said Hermont. is going to continue to expand.” Líder anticipates annual demand for its If there is a single factor inhibiting sales, it executive charter services to increase by 15 is lengthy backlogs. “Clients would like to re- percent this year, in part due to travel require- ceive their aircraft sooner, but with increased ments of those involved in the presidential sales worldwide, it’s unlikely this will improve and congressional elections. While the com- anytime soon,” concluded Hermont. –E.J.

OceanAir Gains Turboprop Market Share

OceanAir Táxi Aéreo has copters, to be used for busi- the PC-12 sales were to indi- grown, is still growing and ex- ness transport and to expand viduals who had never owned pects better things to come. the AW139 offshore role. an airplane. OceanAir was launched Also part of the deal was an Brandão was equally ef- by Grupo Maritime oil’s con- option for another 56 of the fusive on the subject of jet trolling shareholder, German company’s helicopters. sales, which he said are on Efromovich, in 1998 to meet OceanAir sales director the needs of oil executives Jóse Eduardo Brandão said moving in and out of Brazil. demand for helicopters in In 2003 OceanAir be- offshore operations is likely came the exclusive represen- to expand substantially in tative of Bombardier in Brazil coming years. He added and two years later was rep- that OceanAir expects to Eduardo Brandão, general director of resenting Swiss airplane man- conclude the sale of three hel- OceanAir Táxi Aéreo (left), with ufacturer Pilatus. This year, icopters for offshore use in the Bombardier v-p of Latin American sales Fabio Rebello at LABACE 2005. the São Paulo-based com- third quarter. pany became the exclusive A year after becoming the the rise this year. “We’ve had dealer for helicopter manu- Pilatus sales rep in Brazil, great [customer interest in] facturer AgustaWestland. OceanAir has sold 12 new the Challenger 300 and we OceanAir has also signed PC-12s. The company now expect that sales will be a contract to acquire six claims a 30-percent share of stronger once the first air- AgustaWestland AW139 the Brazilian turboprop mar- craft is delivered to Brazil in medium twin-turbine heli- ket. He further noted that all September.” –E.J.

36aaAviation International News • September 2006 • www.ainonline.com