Líder Aviação takes an optimistic view on market growth

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Líder Aviação has invested in technology to keep up with new trends. The company recently released a charter booking app and aircraft sales and acquisitions director Philipe Figueiredo says: “We want to be the first to invest and bring new things to our market.” This comes at a time when untapped opportunities in Brazil are starting to emerge.

The country has experienced a downturn in business aviation over the past three years, but since a new government came into power the future feels more positive. Charter activity for Líder is increasing, as is its FBO business, and Figueiredo expects to see five per cent year-on-year growth for 2019. The company has a national footprint, being present at all the main airports, and is able to support customers all over Brazil.

As part of the Signature network worldwide, its customers can use those airfield services when abroad, but 90 per cent of the company’s charter activity is concentrated in Brazil itself.

Líder has a large charter fleet: 24 aircraft from turboprops to mid-size jets; and 36 helicopters, positioned all over the country. Its largest is a Hawker 850 that perfectly covers inbound demand with just one stop if customers want to fly in from the US or Europe.

There is a concentration of money in the south east, where the majority of charter takes place. Flights tend to be of between one to two hours’ duration and there may only be two bags onboard. “So there is no need for us to invest in heavy iron or big cabin aircraft, because there is no demand for them,” he says. “If there were any change in the profile of flights or customers that would justify buying a bigger aircraft, then we would get one. But based on current demand we have no reason to make such a purchase.”

As for the concentration of GDP in the south east, he explains that the reasons are historical. There is still a lack of infrastructure in the midwest and north east, but that means thereis potential for business aviation to expand into those areas. He emphasises the maturity of Brazil’s business aviation market: it has the second largest corporate aviation fleet the world. “We are a country, but with a continental dimension,” he says. Brazil has over 3,500 airfields, but only three per cent have commercial services. So he believes Brazil will remain a heavy buyer of charter, and of the aircraft themselves, for many years to come.

As with all Latin American countries, there are considerable operational challenges. The greatest is the need for daily contact with the authorities to ensure efficiency of operation and compliance. Then there are state, federal and municipal tax issues that can impact on pricing, and this again requires daily accounting in order not to lose money and to ensure that the customer is always offered the right price. Third is the exchange rate: since the Brazilian market prices and values in dollars, it is essential to keep up-to-date.

But now, thanks to the new government, Figueiredo is starting to see the grass shoots of reform. He believes the intention is to modernise the way the country is managed, and he says the president has brought in good technical people to run Brazil, to make it better to operate and do business in. “I see that the future is lighter than the past,” he concludes, “but still with challenges to address on a daily basis.”