South America Aviation Market: Opportunities, trends and Challenges (2018 - 2023)

  • ID: 4402861
  • Report
  • Region: America, South America
  • 119 pages
  • Mordor Intelligence
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There Has Been a Global Boom in Demand for Commercial Jets


  • Air Tractor
  • Bell
  • Bombardier
  • Dassault Falcon Jet
  • Embraer
  • Gulfstream
  • MORE
The South American aviation market was affected adversely by the financial crisis, which had originated in the United States and the sales were impacted adversely by the same, but the market has recovered, since. Furthermore, the good performance of regional jets sold by Embraer were termed profitable by users and could certainly turn the tide as aircraft orders from other airlines continue to increase. Rising income levels in the continent would ensure good growth of the aviation sector regarding passenger traffic, in the years to come.

Aviation is broadly categorized into civil aviation, which includes both general aviation and scheduled air transport, and military aviation. The general aviation business jets contribute the maximum revenue, and this segment is poised to grow at the fastest rate in the future. The three broad categories of business jets are large, medium and small-cabin jets.

The large cabin jets are currently performing the best with an increase in the penetration into newer markets, improved margins and sales; whereas, the small cabin jets or the light jets continue to face an uphill task on all fronts. The launch of HA-420 Honda Ultra Light Jet, priced at just USD 4.5 million, has further intensified the competition in this category.

There has been a global boom in demand for commercial jets, starting from 2011, which is due to the introduction of new technology that enables jets to record superior levels of efficiency. Three years’ prior, the price of ATF was at its peak, so efficiency considerations played a huge part in buying decisions. The high demand has resulted in a huge level of backlog. Airbus and Boeing have an order book more than 10,000 aircraft, which represents ten years’ worth of production. So for the next ten years, irrespective of the actual scenario, commercial jets are expected to see impressive levels of growth. The penetration of rotary wing in civil aviation in South America is relatively better when compared to regions with similar economic development in the Asia-Pacific region. Sau Paulo is in fact called the “helicopter capital” of the world and has the highest number of helicopters per capita, globally. But in other countries, apart from Brazil, the penetration of rotary wing aircraft is quite low. Hence, it presents a good opportunity for global aircraft manufacturers and OEMS to set up the base to service this region.

Embraer S.A. recently reported a possible USD 200 million settlement, regarding an inquiry into sales made in 2010, outside Brazil. The allegations were regarding the non-compliance with the U.S-FCPA rules and regulations. This USD 200 million contingency has put the revenue at USD 1,366.4 million, a decline of 9.7% compared to the same period, the previous year. The prices of shares were recorded at USD 17.24 - USD 32.50 for 52 weeks in the New York Stock Exchange. The announcement was made on 29th July, and its share price fell from USD 21.19 on 28th July to USD 18.38 on 29th July, while closing at USD 17.49 on 22nd August 2016 in the New York Stock Exchange.

Embraer stock earnings declined 10.7% on 3rd March 2016, which was followed by a sellout of shares worth USD 63.3 million, previously owned by Oppenheimerfunds, Inc. Another reason for the Embraer loss can be partially attributed to bankruptcy declared by Republic Airways Holdings. Embraer had USD 101 million in provisions related to Republic bankruptcy. This bankruptcy could cost the sale of 24 aircraft presently in backlog order of Republic Airways Holdings. Embraer currently has a firm order backlog of 500 - E-Jets, worth almost USD 16 million, and a total order backlog worth USD 21.9 billion. The company also announced firm orders received from Horizon Air for 30 - E175 jets in April 2016 and for 23 business jets from Mexico’s premium business aviation service provider. Embraer still maintains world market leadership with over 50% sales and 60% deliveries in the segment for commercial jets with 70-130 seats
Note: Product cover images may vary from those shown
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  • Air Tractor
  • Bell
  • Bombardier
  • Dassault Falcon Jet
  • Embraer
  • Gulfstream
  • MORE
1.1 Research Methodology
1.2 Key Findings of the Study


3.1 Introduction
3.2 Technological Advancemanets and Developments in R&D
3.3 Investment Analysis
3.4 Porters Five Force Framework
3.4.1 Bargaining Power of Suppliers
3.4.2 Bargaining Power of Consumers
3.4.3 Threat of New Entrants
3.4.4 Threat of Substitute Products and Services
3.4.5 Competitve rivalry within the Industry

4.1 Drivers
4.2 Restraints
4.3 Opportunities

5.1 Helicopters
5.2 Piston Fixed Wing
5.3 Tuboprop
5.4 Business Jet

6.1 Brazil
6.2 Argentina
6.3 Colombia
6.4 Venezuela
6.5 Others

7.1 Introduction
7.2 Market Share Analysis
7.3 Developments of Key Players

8.1 Embraer
8.2 Lockheed Martin
8.3 Bell
8.4 Eurocopter
8.5 Boeing
8.6 Airbus
8.7 Finmeccanica
8.8 Bombardier
8.9 Gulfstream
8.10 Textron Aviation
8.11 Pilatus
8.12 Dassault Falcon Jet
8.13 Air Tractor
8.14 HondaJet
8.15 Cirrus
8.16 Robinson Aircraft Company
8.17 Diamond Aircraft

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  • Embraer
  • Lockheed Martin
  • Bell
  • Boeing
  • Airbus
  • Finmeccanica
  • Bombardier
  • Gulfstream
  • Textron Aviation
  • Pilatus
  • Dassault Falcon Jet
  • Air Tractor
  • HondaJet
  • Cirrus
  • Robinson Aircraft Company
  • Diamond Aircraft
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown