B&D Consulting Unveils Study Outlining Investment Opportunities in Brazil's Aviation Sector
The report states the civil air transportation sector in Brazil has posted a growth rate of 146 percent since 1998.
B&D Consulting has announced it has published a study outlining investment opportunities in Brazil's growing aviation sector. “This is out of necessity but also recognition by many in the government that Brazil’s moment may have finally arrived, with benefits as well as scrutiny, and they have to get it done right, and on time. That will require partnerships.” Through a detailed analysis, and taking advantage of its presence in São Paulo, B&D Consulting has identified several potential investment opportunities for U.S. companies in its report.
The report states the civil air transportation sector in Brazil has posted a growth rate of 146 percent since 1998, according to data released by the National Agency of Civil Aviation (Agência Nacional de Aviação Civil – Anac). There are several supporting factors that indicate that this expansion could continue into the coming decades, highlighted by several major sporting events scheduled in the country over the next several years including the 2016 Olympic Games and the multi-city World Cup soccer competition in 2014.
Robert J. Kabel, who leads B&D Consulting’s efforts for the Brazilian market, stated, "These events will require significant improvements in airports, especially in Rio de Janeiro and in most of the 12 cities planning to host the soccer competition in four years."
The report also explores the growing Brazilian domestic consumer market for aviation, part of a general expansion of domestic demand across various sectors that has driven Brazil’s notable emergence on the world economic stage.
Kevin Ivers, B&D Consulting’s advisor in São Paulo, said that the opportunities in Brazil’s aviation sector are “unique and unprecedented for foreign players, given the urgent needs and the tight calendar” for improvements and expansion.
“The combination of major international sporting events and the rapid expansion of domestic consumer demand have led the Brazilians to open up what has been a closed sector for decades," Ivers said. "This is out of necessity but also recognition by many in the government that Brazil’s moment may have finally arrived, with benefits as well as scrutiny, and they have to get it done right, and on time. That will require partnerships.”
The study states that the Antonio Carlos Jobim International Airport, a principal point of entry for the hundreds of thousands of visitors expected to attend the Olympic Games, will have to almost double its capacity by 2016. Due to the amount of required investments, estimated at almost US$ 5 billion, and the short time period involved, the state airport management company Infraero is seeking greater participation from the private sector, thereby opening opportunities for U.S. companies with expertise and capacity in this area to start operating in the near future, either by themselves or in consortia with local firms.
"This need for increased capacity, along with the trending of regionalization of domestic aviation and the fact that region l airport system is not regulated by the country's federal government, presents several investment opportunities," Kabel said.
"But like any investment opportunity, those relating to Brazil's aviation and transportation infrastructure do not come risk-free," continued Kabel.
