The future of Latin America’s aviation sector is favourable, as the region’s industry is expected to experience the next highest growth rate following Asia, despite economic and political challenges.
ASM’s commercial visionary and senior management have been closely watching Latin America’s progress, eyeing expansion into the region for some time. With the COVID era hopefully coming to an end, ASM takes this cross-continental step to engage with the great business potential of South America.
General Aviation Prospects in the Latin America
The Mordor Intelligence report valued the Latin American aviation market at USD 6.2 billion in 2020. The market is estimated to grow around 35%, reaching USD 9.5 billion by 2026.
The COVID-19 pandemic in 2020 significantly impacted the aviation industry in Latin America. It affected the industry globally. Air travel demand dropped, and airlines cut down their capacity. Commercial airlines suffered nearly unbearable losses in passenger traffic. However, several factors serve as a pathway to recovery. These include domestic travel surge, low-cost airline development, military aircraft fleet modernization, and increased cargo movements.
Despite the challenges, major airport infrastructure developments are underway. The Argentine government plans to invest USD 750 million in expanding Ezeiza International Airport. Airport privatization in several countries is expected to advance the region’s airport infrastructure significantly. These countries include Brazil, Jamaica, Honduras, Paraguay, and Peru. This will boost commercial airline capacity. It will also lead to growth in the general aviation market. The commercial segment is expected to register the highest CAGR by 2026, even after the pandemic’s impact. Some airlines have deferred aircraft deliveries. However, many orders have not been cancelled. Boeing projects a demand for 2,610 new aircraft in the region over the next two decades. Narrow-body aircraft are expected to comprise 90% of this demand. This reflects the growing need for affordable air travel across and within the region.
The Business Aviation developments in South America
Latin America’s diverse geography necessitates business aviation, as key economic areas that attract investors are separated by jungle, mountains, and prairies.
The Latin American business jet market is expected to grow at a CAGR of above 0.3% by 2026. Light, Mid-size, and Large private jets are in high demand in Brazil, Mexico, and Colombia, presenting opportunities for flight support providers. The mid-size jet segment is projected to grow at the highest CAGR during the forecast period.
Currently, 25% of South American business jets are aged 30+ years. This suggests that future retirements will make room for newer business jet deliveries in the coming years. As the business aviation sector expands, modernizing business airport infrastructure becomes a high priority. This will enable governments and private organizations to invest heavily in infrastructure.
ASM joins the Latin America Club
The UNWTO reports that Latin America’s air traffic demand is growing at 5.6% annually. This surpasses projections for the rest of the globe. To meet this growing demand, the region’s airlines must increase seat capacity and fleets, especially in regional and domestic markets. According to Boeing, Bombardier, Airbus, and Embraer, Latin American companies are placing the most significant purchase orders.
ASM joins financially strong businesses worldwide in entering Latin America’s aviation industry. ASM stakes on its human resources. It takes a highly qualified approach to the services provided.
ASM has appointed Mr. Manuel López Blanco as the Business Development Manager for Central & South America. This strengthens its presence in the region. Mr. Blanco adds to ASM’s amalgam of professionals in Latin America.
Blanco has over 19 years of technical sales experience, commercialization and customer management. His dynamic, analytical personality will now lead ASM to a new level of excellence in the South American aviation sector – on ground and in flight.
For further information, please contact:
Aviation Services Management FZE
Suite 217, 8WB Building, Dubai Airport Freezone, P.O. Box 293684, Dubai, UAE
Tel: +971 4 4097755
Email: sales@asm.aero
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