Overview

The Brazilian aviation industry is a top 10 export destination for U.S. aerospace products. Brazil has the 5^th largest airspace in the world and is one of six countries globally that manufactures commercial jets. Aerospace products and parts is the second-largest sector for U.S. exports to Brazil. U.S. companies exported US$ 6.808b in 2022, a nearly full recovery to the pre-pandemic high of US$ 7.021b in 2019.  Aviation is 18% of transportation spent in the country. There is enormous potential for growth in per capita travel capacity (number of flights taken per year per person).  The Brazilian index is 0.5, comparing to Spain 4.5, U.S. 2.6, and Chile 1.2.

                                                                      Source: Painel de Indicadores do Transporte Aéreo

Commercial flights in Brazil remain below pre-pandemic levels, but the market continues to recover. This aligns with the global trend of reduced travel during the COVID-19 pandemic. Analysts predict that the industry will surpass 2019 total flights by 2023. In 2022, Brazil saw 97.9 million passengers; 82.2 million domestic travelers and 15.7 million international travelers, according to the Anuario do Transporte Aereo 2022. These numbers represent 82.13% of 2019 passenger volume of 119.4 m passengers, when there were 95.1 million domestic travelers and 24.1 million international travelers.

U.S. companies are encouraged to establish partnerships with local Brazilian companies and are welcome to participate in public tenders and reverse auctions administered by the Brazilian government. To succeed in Brazil, U.S. companies must either be established in the country or have a well-informed local representative. It is important to have a distributor or systems integrator that can offer post-sales and maintenance services, replacement parts, and repairs. Whether introducing a product to the market independently, or entering with an existing local partner, it is necessary to have a strong market entry strategy to penetrate the Brazilian market. Aircraft part suppliers without local representation may find it difficult to build relationships, get timely information, and gain access to procurement decision-makers. 

Commercial Aviation  

Brazil has 5,500 cities and is served by 3,240 airports. According to the Agência Nacional de Aviação Civil (ANAC), the Brazilian civil aviation authority, 503 are public, and 2,737 are private, including 1,340 helipads, and 183 helidecks. 98 percent of the country’s air passenger flights are concentrated at 65 airports. 31 of those airports are in major cities with terminals able to process over one million total annual passengers. Since 2019, the government of Brazil has invested $US 600m in the expansion of regional aviation across the country.

Brazil has a large commercial aviation market. According to ANAC, in 2022, in Brazil, 831,000 flights were made, an increase of 39% compared to 2021. Of these, 731,000 were domestic flights (an increase of 33.7%) and 100,000 were international flights (an increase of 89%) according to Anuario do Transporte Aereo 2022.

There are 13 domestic air transportation companies certified to operate in the country, concentrated in five Brazilian states: São Paulo, Paraná, Amazônia, Goias, and Rio de Janeiro. In addition, ANAC has certified 72 foreign companies to operate regularly in the country, including seven U.S. companies.

In 2022, the number of domestic flights grew 33.7%. Domestic flights are dominated by three airline companies: Latam, Azul, and Gol. Latam had the largest share in the domestic passenger market in 2022, with 28.7 million passengers, then Azul with 26.5 million and Gol which transported 26.3 million passengers. Latam, Gol, and Azul increased the numbers of passengers they transported by 44%, 40% and 16%, respectively in 2022, compared to 2021 according to the  Anuario do Transporte Aereo 2022.

Leading Sub-Sectors

There are significant opportunities for U.S. businesses to supply the needs of the Brazilian aviation sector.  Leading subsectors that represent the best opportunities for U.S. suppliers of the aviation industry include:

• Original Equipment Manufacturers (OEMs)
• General Aviation (Executive, Agricultural, Aeromedical, Urban Air Mobility)
• Aircraft Repair, Maintenance, and Overhaul (MRO)

Original Equipment Manufacturers (OEMs)

Brazil has the 3^rd largest civilian aviation system in the world which includes:

• 2^nd largest general aviation fleet
• 3^rd largest executive airplane fleet
• 2^nd largest helicopter fleet
• 2^nd largest airport network 

The most significant OEM in Brazil is Embraer, a global company headquartered in São Paulo with businesses in commercial and executive aviation, as well as in the defense and security markets. Founded in 1969, the company has become a leading manufacturer of commercial jets with up to 150 seats.   

Currently, Embraer imports approximately 60% of its components from North America, primarily from the United States. Embraer’s primary purchasing criteria include:

• technical solutions
• product quality
• commercial and aftermarket support
• certifications such as AS9100, EN9100, JISQ9100 and NBR15100 depending on the type of product

The second major Brazilian OEM is Helibras, the Brazilian subsidiary of Airbus Helicopters. In 2022, Helibras sold 50 helicopters.

 The chart below indicates the number of aircraft operated by airlines in Brazil from 2018-2022, listed by manufacturer Anuario do Transporte Aereo 2022:

 The chart below presents the number of aircraft by manufacturer per airline that operated domestic flights in 2022 Anuario do Transporte Aereo 2022

Opportunities

Executive Aviation

While the COVID-19 pandemic hurt many business sectors, executive aviation saw an increase in activity. Citing health concerns, more people chose private flights generating an increase in demand for air taxis at first, and then soon after, for the acquisition of aircraft. This demand drove an increase in the market for used aircraft around the world and caused not only higher prices, but also a shortage of available aircraft.  

Agricultural Aviation

Brazil has the second largest agricultural plane fleet in the world comprised of 294 private and 217 public companies. 1,541 aircraft are part of Brazil’s agricultural sector, with the majority belonging to private companies and a small minority belonging to the government. 

The most used aircraft models in the agriculture sector are the Embraer EMB-202 Ipanema (55.47%), and U.S.-made turboprop aircraft. In the past ten years the number of agricultural aircraft grew 56%. In 2011, turboprops represented only 3.39% of the segment. Since then, the turboprop configuration grew 344% and in 2022 represents 22.45%. The fuel usage in the agricultural fleets are 40.96% aviation gasoline, 34.77% ethanol, and 24.27% aviation kerosene. 

More than 2,000 agriculture drones, known as spray drones, are operated by 74 companies in Brazil. 

Aeromedical

This segment operates in pre-hospital care, inter-hospital transport, and transport of human organs and tissues. The aeromedical sector is seeking U.S. companies that specialize in converting and adapting passenger aircraft and helicopters into aeromedical aircraft providing aeromedical equipment and implementing design projects in transformation and adaptation of interiors.

Urban Air Mobility

Embraer, through its subsidiary EVE Air Mobility, is accelerating the development of solutions in the Urban Air Mobility market. It presented the first Electric Vertical Take-Off and Landing Vehicle (eVTOL), prototype on May 8, 2018 

Embraer plans to start eVTOL production in 2026. The vehicles will be able to carry up to four passengers plus the pilot. The initial plan calls for 200 units and 37 landing sites, called verti-ports, which are expected to be fully operational in 2035. Two have already been announced: at Galeao Airport in Rio de Janeiro and the Henrique Simonsen Business Center, in Barra da Tijuca, Rio de Janeiro. 

Other Subsectors

Other aviation subsectors include aerial photography, air reporting, air advertising, air inspection, aero-cinematography, aerial survey, air taxi, firefighting, scenic flights, aerial demonstration, and external load.

Repair & Maintenance

Repair and maintenance remain a strong sub-sector in the Brazilian market. According to ANAC reports, the commercial aviation security and maintenance cost of aircraft ranges between 10.6% and 19.9% of total costs over the past four years. This represents a total market range of US$ 723m to US$1.13b.

Source: Painel de Indicadores do Transporte Aéreo

It must be noted that this amount only represents the opportunity in the commercial aviation sector and does not consider the sizable market for executive aviation, air taxi, helicopters, agricultural aviation, general aviation, shipping or the large market for defense aviation repair and maintenance. The certified Brazilian repair and maintenance companies are historically attentive to new products on the international market, and interested in meeting international suppliers, specifically from the United States, that offer products for their customers in Brazil.

Resources

Trade shows

• Annual Latin America Business Aviation Conference & Exhibition LABACE is the largest business aviation trade show in Latin America. Held at Cogonhas Airport in São Paulo, the show attracts over 150,000 visitors, 2,000 exhibitors, and 700 aircraft. The trade show is usually held in August (2024 date to be determined). 
• International Aeronautical Maintenance Repair and Overhaul Show MRO Brazil is the largest MRO trade show in Latin America. This show will be held at the Frei Caneca Convention Center in São Paulo in September (date to be confirmed).

Government Ministries and Regulators

• Ministério de Portos e Aeroportos (MPA)

• Agência Nacional de Aviação Civil (ANAC)

Principal Business Associations 

• Aerospace Industries Association of Brazil (AIAB)
• Brazilian Association of General Aviation (ABAG)
• Brazilian Airlines Association (ABEAR)
• Brazilian Aviation Institute (IBA) 
• The National Civil Aviation Agency (ANAC)

For more information please contact U.S. Commercial Service Industry Specialist: renato.sabaine@trade.gov