Business Aviation Appetite in Latin America Remains Strong, but Long-term success will be determined over the Next Few Years

Written by Fabrice Roger, former Jetcraft Sales Director, Latin America

Latin America hosts the second and third largest business aircraft markets by fleet size within the Americas, with Mexico’s fleet (988) recently overtaking Brazil’s (782) for the #2 spot behind the US, according to AMSTAT. There is a healthy appetite for private aviation in the region, fueled by long distances in air travel, increased security concerns and proximity to the United States. However, the market’s growth potential continues to be challenged by economic pressures, government changes, commodity pricing fluctuations and a lack of a modernized infrastructure.

There is still a need in many Latin American countries for more runways, airports and maintenance operations to reach a US business aviation standard of quality and efficiency. Mexico has the most advanced airports and maintenance facilities due to its proximity to the United States. Despite being a top business aviation market in Latin America, Brazil has a very limited amount of runways suitable for business aircraft. The country is starting to privatize airports now, but its current economic and political environment has slowed this process. However, if the new government prioritizes these investments after the planned elections in 2018, it could have a positive effect on infrastructure and growth.

For Brazil, an increase in commodity prices will also help to turn the tide favorably for private aviation growth and advancement in the region.

According to AMSTAT, 454 business jet transactions have been executed in Latin America in 2017, with 132 of those taking place in Brazil, nearly all coming from within the country due to significant taxes imposed on imported aircraft. Mexico has executed 106 transactions this year, with more aircraft coming from outside of the country. Chile remains active and has made significant investments in its infrastructure, while Venezuela and Argentina have executed 29 and 19 transactions, respectively, in the first half of 2017.

Approximately 22% of transactions conducted in Latin America this year involve aircraft from the United States. And, Jetcraft continues to help many Latin American buyers and sellers take advantage of the robust US market inventory.

Time will tell how the full impact of the socio-economic situations of some countries will materialize. If commodity prices increase, and infrastructure improves, business aviation can play a critical role in driving long-term economic growth for Latin America. More work, however, needs to be done before this becomes a reality.

Jetcraft has created a unique position within the industry, situated between a broker and a manufacturer, which offers Latin American customers a transaction partner that can facilitate an entire deal customized to their unique requirements while taking advantage of our worldwide network and substantial inventory, industry connections and regional expertise. Contact our Latin American Sales Director at [email protected] for information about how he can assist you in buying or selling an aircraft.