Factors that support growth of Brazil aviation industry: The continent sized country which is 3,286,482 sq miles makes air travel a crucial necessity. * Brazil government facilitates opportunities of international aviation players. * Over 200 million population of the nation. * Almost 70 airports are congested and are in urgent need of an upgrade as the country prepares to host the 2014 World Cup and the 2016 Summer Olympics in ROI. Globalization of the aviation industry: Brazilian government is open to foreign direct investments.
United States is the number one foreign direct investor in Brazil. Brazier’s firms are highly integrated in to the global aerospace supply chain. They have formed Joint ventures to handle risk management with foreign players. When Embrace became more successful lots of foreign companies moved to Brazil to better serve the customer. There are significant foreign investments in Brazilian maintenance, repair, and overhaul industry, with GE, Rolls-Royce, Pratt ; Whitney Canada, and Goodrich among the manufacturers operating MR. facilities in-country.
Information Technology VS. Aviation Industry: Brazier’s aviation sector uses Information technology for various purposes such as aeronautical billing, Air traffic control, aeronautical invoicing, airline reservation, middling airport operational databases, computerized security checking, E-services, E-ticketing, Obscurity, decision sciences, management information systems, aviation data communications, and aircraft design. Brazil is the world’s largest user of tower e-strips – a system which uses electronic flight strips instead of old paper strips. The e-strips efficiently manage flight data.
In Brazil air traffic control is run by Brazilian Air force (FAA). Recommendations: Brazil Aviation Industry By deadheads understand that the Brazilian market is growing strongly and is forecasted to continue this trend for the next 10 years. The government policies that are in favor of globalization are very important for the success of the industry. Any changes in the government policies can severely affect the industry. The aviation industry also contributes to the growth of the information technology sector, the country’s infrastructure and many other industries. TABLE OF CONTENTS * Introduction 1.
Booming Brazilian aviation industry 1. A. World Cup and Olympics 2. Brazil Aviation market overview 3. Brazil Aviation sector and information technology 4. Brazil airline crisis 5. Embrace 6. Government policies for the aviation industry * Conclusion * References Introduction: As of 2012, Brazil is the 6th largest economy in the world, and the Brazilian airline market is the most dynamic and changing. It has the world’s second largest aviation sector which is led only by the US. The country is the ninth largest oil producer in the world, with many oil reserves still being discovered in its coastal regions.
Unlike many other countries, Brazil is experiencing an economic boom due to rising oil prices. The growth in economy and GAP supports the growing aviation industry as the aviation industry is able to produce Jets, business aircrafts, military aircrafts, helicopters etc. ND Brazier’s economic growth and the passenger traffic are also expected to double in the next ten years due to the upcoming World Cup and Olympics games. Brazier’s Domestic aviation market is also increasing at a fast pace because higher numbers of people are crossing the middle class demarcation.
A recent survey shows that a larger number of people flew to different places than people who took inter-state buses in the same time period. The most well-known Brazilian aircraft manufacturer is Embrace. Embrace is the third largest aircraft manufacturer in the world. When Embrace became more successful lots of foreign companies moved to Brazil to better serve their customer and Brazier’s firms became highly integrated into the global aerospace supply chain, forming Joint ventures to handle risk management with foreign players.
There are significant foreign investments in Brazilian maintenance, repair, and overhaul industry, with GE, Rolls-Royce, Pratt & Whitney Canada, and Goodrich being among the manufacturers operating MR. facilities in-country. Brazilian government encourages foreign direct investments in various forms, with the United States as the number one foreign direct investor in Brazil. . Booming Brazilian Aviation Industry: There are a number of reasons for the significant growth of the Brazil aviation * Average economic growth rate of Brazil is 5% per year, which triggers average disposable income level of people, driving the demand of air travel. Low cost carriers are a significant reason for the growth of the aviation industry. * The continent sized country (3,286,482 sq miles) makes air travel a crucial necessity. Brazilian government facilitates opportunities for international aviation players. * Over 200 million population of the nation. 1 . A World Cup and Olympics As Brazil prepares itself to host world’s two major sporting events, FIFE World Cup and Olympics in 2014 and 2016 respectively, about 10 billion dollars of investments are planned for improving the aviation industry as the nation’s commercial air traffic is expected to double.
The effect of hosting large sporting events such as the World Cup or The Summer Olympics often provide a boost to the economy, and project the country as a tourist attraction. For example, the amount of tourists attracted to Barcelona and Spain more than doubled in the year following the 1992 Summer Olympics (held in Barcelona). The city of Atlanta also reported a $5 billion economic impact, and is home to nearly 1,600 international companies after hosting the 1996 Olympics.
In order to benefit from the long-term economic windfall, Brazil is making a substantial investment in their aviation structure, and make it more tourist friendly. To move people and cargo the country has planned to build eight new mega airports and eight hundred new domestic airports. Brazil Aviation Market Overview Embrace is the most dominant player in the Brazilian aviation market, is ranked as the third largest aviation company in the world, and was also awarded the most ancillary transparent company for the year 2012. The aviation industry of Brazil deals with all aspects of the sector.
Brazil has 165 airports with a commercial aviation market that is primarily domestic (88. 7% in 2011). The major international service is split between South America, Europe, and the US. Over the past 5 years’ service is growing to the Middle East, Africa and Central America (Panama). The Brazilian aviation industry growth has also influenced infrastructure improvements around the countries airports, including a GE overhaul facility near ROI De Jeanine, which is now a major exporter of services. These pictures show the aviation routes of the Brazilian airways..
Brazil Aviation Sector and Information Technology: Brazier’s aviation sector is one of the most technologically advanced sectors compared to the rest of the worlds. They use Information technology for various purposes such as aeronautical billing, air traffic control, aeronautical invoicing, airline reservation, handling airport operational databases, computerized security checking, E-service, E- ticketing, obscurity, decision sciences, management information systems, aviation e-strip, which uses electronic flight strips instead of old paper strips, which efficiently engage flight data.
Only a few advanced countries use the e-strips technology. As is usually the case, efficiency, productivity, and cost-benefit analysis is driving the effort there has been an increase in air traffic, signifying a need for enhanced communications between both air and ground entities involved in flight operations, which pushed the International Civil Aviation Organization (CIAO) to begin development of new methods of communication within the aviation industry that will not impede or take offline the old methods of communication for extended periods of time.
The purpose of this was to move from the old infrastructure (Aeronautical Fixed Telecommunication Network or AFT), to the new system called the Air Traffic Services Message Handling System (AMAHS). This new technology was embraced by the Brazilian aviation industry, and curriculum was quickly developed for both major Universities in the country, including the Technological Institute of Aeronautics (TIT). Another major factor in the Brazilian aviation industry lately has been decision support systems and cost benefit analysis tools. Brazilian airline crisis: Brazil experienced an airline crisis on September 29, 2006 when a Gold Transporter
AEros Boeing 737-800 collided with an Cellarer Embrace Legacy 600 over the state of Matt Gross. It led to the loss of 154 lives and is considered the deadliest aviation disaster in Brazilian history. The Exclaimers transponder was found to have taken off 54 minutes before time. The radar footage shows that the primary radar lost contact with the legacy 28 minutes after its transponder was switched off. This crash could have been avoided with appropriate corrective measures and better air traffic control, which was implemented following the crisis.
The accident triggered much genealogical advancement and personnel issues were made public in the area of air traffic control operators. This airline disaster contributed to a demand for better information technology in Brazilian aviation and influenced growth in the industry well after the accident occurred. Embrace: Embrace was established as a state-owned enterprise and was privatized in 1994. Ambler’s largest aircraft can seat up to 122 passengers in a single-class configuration, and they became a serious competitor in the business Jet market after the introduction of the Phenol 100 in 2008.
Many of Ambler’s regional Jet programs eave foreign suppliers, for example, the wings for the ERG-135/40/45 family were designed and manufactured by a Spanish firm, and the wings for the ERG-170/75/90/95 families were initially made by Sukiyaki Heavy Industries of Japan. Many of Ambler’s manufacturing supplies come from foreign suppliers initially, and are imported for assembly in Brazil, but as the company demanded more supplies, many companies set up operations to support the growing industry.
And now while a vast majority of Ambler’s 17,149 direct employees are located in Brazil, Embrace has established facilities and Joint ventures in other countries. Embrace now has an assembly plant in Hardin, China, which manufactures ERG-sass, has begun a venture with COMA, a maintenance, repair, and overhaul provider in Portugal which was previously owned by the Portuguese government, and has opened an assembly facility for the Phenol in Melbourne, Florida. The below chart shows the growth of Embrace from 2010 – 2012.
Government policies for the aviation industry: currently restricts foreign investment in domestic airline companies to a maximum of 20 percent. The Government of Brazil is considering potential prevarication of commercial airport operations owing to the rapid growth in the industry. Conclusion: In order for the country of Brazil to continue to improve their economy, and to take their place among the world leaders in terms of industry, a substantial investment in the Aviation industry is crucial, which includes heavily investing in the advancement of its information technologies as well.
Since the country limits the amount of foreign investment (20 percent) in its aviation market, the difference must be made up internally, which supports economic growth locally for the country. With grand-scale events such as the World Cup and the Summer Olympics in the near future, the upgrades necessary to accommodate the millions of tourists could have lots of long- term benefits.
