ASM expansion to the Latin America

ASM expands its horizons to the South America

DECEMBER 2021

The future of Latin America’s aviation sector is favorable – despite economic and political challenges, following Asia, the Latin America’s industry is expected to experience the next highest growth rate.

At ASM, our commercial visionary, the senior management were closely watching Latin America progress, eyeing expansion into the region for some time. With the COVID era hopefully coming to its end, ASM takes this cross-continental step to engage with a great business potential of the South America.

General Aviation prospects in the Latin America

According to the Mordor Intelligence report, the Latin American aviation market was valued at USD 6.2 billion in 2020, with growth estimated to reach around 35%, USD 9.5 billion by 2026.

As everywhere around the Globe, the COVID-19 pandemic in 2020 significantly impacted the aviation industry in Latin America, as the demand for air travel dropped and airlines were forced to cut down their capacity. The losses for commercial airlines in passenger traffic were almost unbearable. While domestic travel surge, low cost airlines development, military aircraft fleet modernization and increased cargo movements serve as a pathway to recovery of the aviation market in Latin America.

Despite all the challenges, airports infrastructure is undergoing major development as well.Argentine government announced plans to invest USD 750 million in the expansion of Ezeiza International Airport. The privatization of airports in Brazil, Jamaica, Honduras, Paraguay, and Peru, is anticipated to bring significant advancement in the region’s airport infrastructure boost commercial airlines capacity, ultimately leading to the growth of the general aviation market in the region. The commercial segment of the Latin American aviation market is anticipated to register the highest CAGR by 2026 even after impact of the pandemic. Some airlines have decided to defer their aircraft deliveries, but much of the aircraft orders are not canceled. Boeing has projected a demand for 2,610 new aircraft in the region over the next two decades. Narrow-body aircraft is expected to comprise 90% of this demand, reflecting the growing demand for affordable air travel across and within the region.

The Business Aviation developments in South America

Latin America’s vast, varied geography cries out for business aviation, as the key areas of economic activity call investors for attractive returns, while being separated by jungle, mountains and prairies.

The Latin America business jet market is anticipated to grow at a Compound annual growth rate (CAGR) of above 0.3% by the 2026. The private jets of Light, Mid-size and Large configuration are especially on demand in Brazil, Mexico and Colombia which is seen as a great opportunity by many flight support providers in the region. But it is the mid-size jet segment that is expected to grow at the highest CAGR during the forecast period.

Currently, business jets aged 30+ years make up around 25% of the South American business jet volume. The high percentage of older business jets suggests that future retirements can make way for newer business jet deliveries into the region in next years. With expansion of the business aviation sector, the business airport infrastructure modernization comes on a high priority.  This will allow the governments as well as the private organizations to invest heavily in infrastructure.

ASM joins the Latin America club

According to the UN World Tourism Organization (UNWTO), the Latin America’s air traffic demand is growing at an annual rate of 5.6% (which surpasses projections for the rest of the globe). Evidently, the region’s airlines will have to increase their seat capacity, fleets, in the next years if they aim to meet this growing demand, particularly in regional and domestic markets. In fact, according to the world’s largest aircraft manufacturers – Boeing, Bombardier, Airbus, and Embraer – the most significant purchase orders are coming from Latin American companies.

That is why ASM’s joins financially strong businesses from around the world, entering the Latin America’s aviation industry. As a custom, ASM stakes on its human resources, in highly qualified approach to the services provided.

A new addition to the ASM amalgam of professionals, now in Latin America is Mr. Manuel López Blanco appointed as the Business Development Manager for Central & South America.

Blanco has more than 19 years in technical sales experience, commercialization and customer management. His dynamic, analytical personality will now lead ASM to the new level of excellence in South American aviation sector – on ground and in flight.