Brazilian Airports and infrastructure

Brazilian Government decides to extinguish INFRAERO and handle its remaining 56 airports to private control

Santos Dumont Airport, in downtown Rio de Janeiro

Brazilian press - free compilation - June 8th, 2017

Brazilian Government has come to a final decision towards offering INFRAERO’s remaining 56 federal  airports to public bidding. The total privatization will be broken down by six geographical areas, after which the state controlled company will be closed for good.

Under the scope of the program, important central airports such as Santos Dumont (SDU / SBRJ) in Rio de Janeiro and Congonhas (CGH / SBSP) in Sao Paulo - seen as the “crown’s jewelry” -  are also included, but will most probably be offered as a separate “special package”, where the winning bidder will also have to embrace the management of lower traffic airfields, which - at least nowadays - are not profitable. So - despite the fact Brazil has five official geographical regions -, the public offer will mention six, as SDU and CGH are located in the Southeast Region.

Air Traffic Control and all of its operators / employees (around 1,900) will be transferred into the Aeronautical Command (FAB - Brazilian Air Force), which will control NAV BRASIL - a new state owned company currently being formed for such purpose.

Federal Government anticipates the whole privatization program shall be able to collect over R$ 50 billion (US$ 15.3 billion, approximately). INFRAERO, in the other hand, has been collecting bad results along the last few years, having closed its 2016 statement with a R$ 751.7  million  (US$ 230 million, approximately) loss. Since the concession program was launched, still under former President Dilma Rousseff’s administration, the federal company has been increasing its losses. According to INFRAERO’s own estimates, the ideal amount of investment on the airports it still controls, for fiscal year 2017, would be as high as US$ 1.6 billion (US$ 490 million, approximately).

The new concession / bidding model was announced early this week and - as of June 19th - the Government will seek investors in Le Bourget (International Paris Air Show), currently the biggest International Aviation and Aerospace exhibition worldwide.

Should the program not be entirely successful, “Plan B” is to announce just a “first phase” at the Expo, i.e. one could opt towards offering only Santos Dumont (SDU / SBRJ) and another two or three airports. “It has to be a solution that does not affect the whole project’s implementation in the long run”, explained an official involved on the program. 

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* This is a compiled free translation of articles published in portuguese by many brazilian midia companies such as OGlobo, VALOR, AeroFlap etc.

 ** For more information and/or technical advice regarding investment opportunities on Brazilian Airport Infrastructure, please feel free to contact us:

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INFRAERO will sell all of its share capital on 5 main federal airports

Guarulhos (GRU), onde of the main hubs where INFRAERO will sell its shares.

O Estado de S.Paulo
Tuesday, may 5th, 2015

Project on the scratchpad. A new solution is now under discussion in Brasília, in order to expedite environmental permit releases for the construction of new and/or renovation of existing airports. Among the proposed changes, the possibility for a "one-stop-shop"  file process (for all required permits).

 André Borges / BRASÍLIA

After changing rules for environmental permit requirements to expedite construction on roads, railroads, ports and energy enterprises, the federal govenrment now prepares a new resolution, aiming to boost its long time promised regional aviation program, or P.D.A.R.

O Estado had acess to the draft of a resolution that simplifies obtention of permits for remodeling and constructing new airports. The text, drawn by both SAC (brazilian National Secretariat for Civil Aviation) and the MMA (brazilian Ministry of Environmental Protection), should be submitted to CONAMA (National Council for Environmental Control) to be officially published later this month.

The initiative, which establishes a set of rules for each state to properly grant licenses for its airports' construction and/or renovation under the program's scope, basically defines that construction companies will no longer have to hire complex environmental studies, while submiting their projetcs. In lieu of the current EIA ("Estudo de Impacto Ambiental", i.e. an Environmental Impact Analysis), the requested document will now be the RAS ("Relatorio Ambiental Simplificado", i.e. a Simplified Environmental Report).  ­­­

Another important change alters the licensing process "ritual", melting together some of the steps. Nowadays, any enterprise willing to engage on airport construction projects needs to obtain a provisional license, i.e. a document providing reasonable evidence of its environmental viability, a costly and time consumming process. Only afterwards can the company file a request for the inception  permit, which virtually releases the beginning of work construction. Once completed, a final permit to commence operations is requested.

As far as regional airports are concerned, it has been decided entrepreneurs will now be allowed to file requests - at one time - for the environmental viability permit, as well as for the release to commence construction work. The analysis deadline for both licenses will also be abreviated. The environmental oversight regulatory bodies of each state (or "secretarias de meio ambiente") will have a maximum 90-day period to issue their final construction work releases.

 Once the airport is ready, the license to commence operations must be granted after 3 months, at the latest.

O Estado has tried to hear SAC and the MMA, but - at least for the moment - both declined to comment, on grouds the resolution is still pending a final mandate by CONAMA.

On the scratchpad. With the changes and simplification proposals on those processes, the  government tries to turn President Dilma Rousseff's promises into reality. In december of 2012, Dilma launched a program for construction and remodeling of some 270 regional airports throughout the country, anticipating investments exceeding R$ 7.3 billion (US$ 2.39 billion). So far, nothing happened.

Earlier this year, SAC announced that - as of july - the first bidding terms edict will be published. The initial goal is to invest some R$ 2 billion (US$ 654 million) on the construction and/or renovation of 80 airports located in eight (8) states: Acre, Amapá, Amazonas, Mato Grosso, Pará, Rondônia, Roraima e Tocantins. In other words, the so-called "Legal Amazonian" region, in its entirety. Out of those 80 airports, at least nine (9) will be built from scratch. The first chosen cities were Codajás (AM), Jutaí (AM), Maraã (AM), Uarini (AM), Cametá PA), Ilha de Marajó (PA), Bonfim (RR), Rorainópolis (RR) and Mateiros (TO).

The ambitious program plans to expand brazilians acess to air transportation, in such a way up to   96% of the country's population is never farther than 100 km from an air terminal. The government explains the remote character of those cities determined their choice to be the first ones targeted by the regional aviation program. Indeed, the small Mateiros, just as an instance, is located at eastern Tocantins state, reachable only through unpaved roads and without any surface paved links, even to neighbour cities.

In january, as the government started its fiscal adjustment, SAC Minister Eliseu Padilha publicly ensured there would be no lack of funds for the regional aviation program, as it would be supported by FNAC's resources. FNAC - the National Civil Aviation Fund - collects money from federal airport fees, as well as from recent privatisation auctions, such as GRU (Sao Paulo - Guarulhos), VCP (Campinas - Viracopos) and BSB (Brasília DF - Intl'), which took place in 2012, and also GIG (Rio - Galeao) and CNF (Belo Horizonte - Confins), handled to private management as of 2013. This year only the Fund expects to collect as much as R$ 4.2 billion (US$ 1.38 billion).

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* This is a free translation from the original article in portuguese, published by "O Estado de São Paulo" on may 5th, 2015. The newspaper's original link is:   http://economia.estadao.com.br/noticias/geral,governo-vai-simplificar-regras-para-destravar-programa-de-aviacao-regional-imp-,1681230

 ** For more information and/or technical advice regarding investment opportunities on Brazilian Airport Infrastructure, please Feel free to contact us:

 Mob Ph # +55 (22) 9 8125-9440

 E-mail: captotero@lhtaviationconsultant.com

 

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Brazilian Government simplifies rules to unleash its regional aviation program - by O ESTADO DE SAO PAULO

Sinop City Airport, in Mato Grosso state (MT)

Paraná-online
29th of april, 2015 - 11h54
(* free translation from the original article in portuguese)

After participating of a meeting with President Dilma Rousseff and her other infrastructure area ministers as of last Saturday 25th, SAC Minister Eliseu Padilha (PMDB-RS) ractified his position by stating three airports will be offered for concession (privatisation) along the next few months: Porto Alegre-RS (POA), Florianópolis-SC (FLN) and Salvador-BA (SSA). "There is no 4th airport being considered for concession, at least not at this time, though - of course - President's decision is final on the matter", said the minister.

Padilha has also admitted there are pressures towards more airports concessions, amidst fiscal restraint times. "People at Ministério da Fazenda (i.e. brazilian Finance Ministry), especially, try to prompt us to include more airports in the concessions list. However, when we demonstrate the amounts which would need coverage by the Tesouro (i.e. the brazilian Federal Reserve) for Infraero's losses, then the speech often drifts towards "Well...OK, let us discuss it a little further".

Other than that - according to the minister -, SAC (brazilian Civil Aviation Secretariat) is ready to proceed with the public concessions for Porto Alegre, Florianópolis and Salvador. However, it prefers holding it for a few days, in order it can be announced as part of a federal government's infraestructure package. "We could already have announced it, but there is a common understanding the President wants to announce the package as a set of actions and investment programs comprising all areas. On Saturday, she pointed out the announcement should take place along the next ten or fifteen days", added the minister during his press briefing.

According to SAC's chronogram, there should be a period of 360 to 420 days between the date expressions of interest are filed and the contracts signature. Padilha has also informed that - theoretically speaking - there are another five or six airports to be handled to private management groups, other than the three already mentioned. The main problem, in his analysis, is that concessions involving this further set of airports might be prejudicial to Infraero Serviços, the company's new management branch, which tends to be used as a platform for the government's regional aviation program. Those three airports would be important for Infraero Serviços to generate superavits, even if it has to take over small (non lucrative) regional airports. "We will strive to be a market player, thus abandoning our state-owned company stand. It is our firm purpose to operate in a joint-venture with an international operator", emphasized the minister.

 * Original link (in portuguese only):  http://www.parana-online.com.br/editoria/economia/news/875019/?noticia=TRES+AEROPORTOS+ESTAO+PRONTOS+PARA+CONCESSAO+DIZ+PADILHA

 

 * For more information and consulting regarding investment opportunities on Brazilian Airport Infrastructure, please Feel free to contact us:

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Three more airports ready for public concession, says Minister Padilha

*Free translation from the original in portuguese - friday 13th, 2015

Brasília and Rio - Brazilian government considers removing Infraero from the management of another 6 (six) federal brazilian airports, besides Porto Alegre (RS), Salvador (BA) and Florianópolis (SC), all scheduled to be auctioned for federal "concession" (i.e. privatized) still along 2015, as O GLOBO published in its thursday - march 12th edition. Such list will include Curitiba-PR (CWB), Recife-PE (REC), Fortaleza-CE (FOR), Manaus-AM (MAO), Goiânia-GO (GYN) and Vitória-ES (VIX). SAC Minister, Mr. Eliseu Padilha, confirmed that Infraero will have a lower share than the previous 49% it held during the previous round of privatisations, allegedly in order to reduce expenditures with construction and/or capital injections on the joint-ventures which will control the terminals.

Infraero has lost 53% of its incomes, upon the first auctions of airports (i.e. Brasília-DF / BSB, São Paulo Guarulhos / GRU, Campinas Viracopos / VCP, Rio de Janeiro Galeão / GIG and Belo Horizonte Confins / CNF), thus having to depend on capital outlays from the brazilian federal government. In order to recover Infraero, the government analyses splitting it into two new subsidiaries: "Infraero Participações", responsible for holding shares on the concession joint-ventures and "Infraero Navegação Aérea" (control towers, aeronautical information services and meteorological observation centers). Besides, it has just created "Infraero Serviços", a consulting branch, in a partnership with a foreign operator.

"We have an ongoing study towards the splitting of Infraero into 3 subsidiaries"- says SAC Minister, after participating of a hearing at "Comissão Geral da Câmara dos Deputados" (i.e. an audit commission within the brazilian House of Representatives).

Construction in 30 regional terminals

The goal, according to SAC, is to allow that the company can  focus on its main activity, which is to manage airports, with better conditions, both from managerial and financial points of view. At the backstage, Infraero has often complained about the "low remuneration" received for its air traffic control services. The prognostic for 2015 is around R$ 198 million (US$ 63.8 million). The state-owned company is still responsible for the operation of 21 control towers and 12 approach controls, having 1,851 employees working on those functions. Because in Brazil air traffic control and air defense have always been an integrated system, the coordination of services related to air space control are a responsibility of DECEA - Departamento de Controle do Espaço Aéreo (i.e. the Air Space Control Department), linked to the Brazilian Air Force High Command.

The concession of those six airports is still pending the conclusion of studies and economic and financial viability analysis. In the case of Goiânia (GYN) and Vitória (VIX), the auction is seen as an alternative to the low pace observed on construction works currently being conducted by Infraero and that have been sluggishly dragged along since 2007. The services were halted by TCU - Tribunal de Contas da União (Brazilian Federal Accounting Court), amidst suspicions of corruption on the process.

Infraero's participation on the new concession model is being revised. According to Minister Padilha, would be through a Golden Share, mechanism where the Brazilian State - even being a minor shareholder - could have exclusive prerrogative on certain decisions. During an event in Rio, President Dilma Rousseff said she will promote a new round of auctions contemplating areas such as airports, highways, railroads and waterways:

"We will begin those concessions on the airports, other than the ones already accomplished, i.e. Rio, São Paulo, Brasília, Viracopos, São Gonçalo do Amarante and in Minas Gerais as well. We are analysing several alternatives."

During the hearing at Câmara dos Deputados, Mr. Padilha ractified the government intends to place biddings for constructions in 30 regional airports, among them Volta Redonda-RJ and Angra dos Reis-RJ, which already have evironmental licensings. Padilha added the government is on the verge of setting the mandate for the subsidies to the airlines on regional/commuter routes. The authorisation for the subsidies was granted by Congress last december. On those specific routes, the Union will bear up to half of the available seats per flight, to a limit of 60.  The measure will mainly come to the best interest of AZUL. 

 

 * For more information and consulting regarding investment opportunities on Brazilian Airport Infrastructure, please Feel free to call us:

 

Tel./Fax # +55 (22) 2629-1270

 

Mob Ph # +55 (22) 9 8125-9440

 

E-mail: captotero@lhtaviationconsultant.com

 

BRAZILIAN GOVERNMENT ANNOUNCES NEW ROUND OF AIRPORT CONCESSIONS WITH UP TO NINE TERMINALS TO BE TRANSFERRED TO PRIVATE GROUPS - by OGLOBO

O Estado de S.Paulo
Monday, 16th of february, 2015

Luciana Collet, Mônica Scaramuzzo,
Márcia de Chiara e Naiana Oscar

After selling DESENVIX - an energy company - to its norwegian partner Statkraft Investments, ENGEVIX is now giving clear signs it considers (though it is not yet a final word) selling its shares on the airports of Brasilia (DF) and Sao Goncalo do Amarante (RN). According to Engevix's Director General, Jose Antunes Sobrinho, the priority is to complete the share transfer on the energy investment, which should generate gains as high as R$ 500 million (US$ 175.44 million) to the holding and provide some financial relief from the pressure caused by its involvement on the so-called "Operation Car-Wash", currently conducted by the Brazilian Federal Police.

According to Antunes, the group would only be interested in selling 100% of its share on the joint-venture,  which controls the airport located in the state of Rio Grande do Norte and has 51% of the SPE (stands for "Sociedade de Proposito Especifico", or a special model of brazilian joint-venture for investments in infrastructure) which currently manages Brasilia International Airport. "It is basically everything or nothing at all", making clear the group would hardly be interested in just reducing its share but continuing as a minor shareholder.

Antunes has also confirmed he has been approached, especially by foreign investors. "We are being approached by many foreign investment groups, many of them firmly interested. The market is clearly prospecting deals and we do accept being prospected."

Another asset likely to be sold is ECOVIX, which actuates on the naval segment. Engevix partner on that operation is Mitsubishi japanese conglomerate, with 30% of the capital. "We consider accepting a 3rd partner entry, in order to increase capital expansion for the naval business", said Antunes. According to him, the asset has been attracting interest, especially bearing in mind their shipyard located in Rio Grande (RS), which has recently expanded its productivity and still has potential to increase its industrial efficiencies. 

* Free Translation from the original article in portuguese

Engevix Group might sell its shares on brazilian airports

 Feb 11th 2015 - 05h00am

Air traffic between Brazil and USA picks exponential growth
By Daniel Rittner | Brasília-DF (* free translation from the original in portuguese)

Upon entering a "final approach" phase for the "Open Skies Policies" deadline (between Brazil and USA), brazilian authorities already celebrate the results of the air traffic deregulation on the routes linking the two countries. AZUL has just filed applications with ANAC (Brazilian National Civil Aviation Agency) for another batch of ten weekly frequencies, in order to increase services out of its Viracopos (Campinas-SP) main hub  and bases in Florida (i.e. Orlando and Ft. Lauderdale), else AZUL has anticipated to the brazilian government its intentions to initiate regular flights to New York before the end of 2015. 

Without getting into further details, Avianca has also requested a "green light" from the agency to establish 14 weekly frequencies towards USA, according to VALOR's sources. This is a market in great expansion and increasingly disputed: the number of passengers transported in flights linking brazilian and american cities, according to an unprecedented statistics published by ANAC, rose 89.2% between 2008 and 2013 (last data available). Along the same period, the number of available flights per week increased from 166 to 260. Nowadays, there are 300 frequencies.

 

Air traffic between Brazil and USA picks exponential growth - by VALOR Online, Sao Paulo, Brazil

January 09th, 2015.

The new Secretary of Logistics & Transport of the state of Sao Paulo - Federal Representative Duarte Nogueira - has announced he is currently negotiating with the Brazilian Federal Government the concession (privatisation) of five state-controlled airports to have its control and management transferred to private management investors.

Mr. Nogueira Duarte has already entertained meetings with ministers Eliseu Padilha (Civil Aviation Secretariat), Antonio Carlos Rodrigues (Transports) and Edinho Araujo (Ports), in order negotiations - currently "on hold" - can now move forward.

The Union had already authorized said concession in January 2014, but it was revoked some six days later, causing perplexity to Sao Paulo's Agency of Transport (ARTESP), a regulatory body under the state's Secretariat of Transport, which conducts biddings for control and management of the terminals by private groups. The state wants private  bidders to take over State Airports Comandante Rolim Adolfo Amaro, in Jundiaí; Antonio Ribeiro Nogueira Junior, in Itanhaém; Campo dos Amarais, in Campinas; Arthut Siqueira, in Bragança Paulista and Gastão Madeira, in Ubatuba.

The intention is to transfer control of the aforementioned airports to private bidders for up to 30 years, with a minimum investment (per airfield) of R$ 75 millions (aproximately US$ 28,517,110.00)

* Translated from the Original Link in Portuguese: http://newsavia.com/governo-de-sao-paulo-acelera-concessao-de-cinco-aeroportos-estaduais-a-privados/

 

State of São Paulo's Government acelerates process for the concession of five state airports to private management

State Airport Gastão Madeira, in Ubatuba-SP

Eduardo Rodrigues & Marina Gazzoni – nov 11th, 2014

Rapporteur of MP (Presidential Provisional Measure, subject to approval by Brazilian Congress within a determined period) impresses Federal Government by proposing end of foreign capital (20%) limit on airlines’ stock. The text – which also grants subsidies for 60-seat aircraft on regional routes – is still pending approval by both chambers of Congress

 Two controversial issues were included on MP (Provisional Measure) # 652, which creates the Regional Aviation Program and has been approved this Tuesday by a Congress Joint Committee: the end of 20% foreign capital restriction on brazilian airlines stock and the construction of private airports for public usage, still an exclusive prerrogative of the Union.

 MP’s rapporteur, Senator Flexa Ribeiro (PSDB-PA), surprised the government by proposing alterations on Law 7565/86 (i.e. the Brazilian Code of Aeronautics, from 1986), in order to unrestrict foreign capital investment on airlines registered and operating in Brazil. The current legislation determines at least 80% of the voting capital must be of national origin, belonging to brazilian citizens domiciled and residing in Brazil. The repeal of such restriction has been under discussion in Congress since 2009. The initial proposal was to extend the current limit from 20% up to 49%, but the text approved by the committee this Tuesday totally drops the restriction, thus allowing foreing investment groups to own up to 100% of a brazilian airline.

 Should the current proposal move forward, international airlines would now be allowed to establish their subsidiaries in the country, with their own CNPJ (brazilian corporate registry) and brazilian directors, in order to operate domestic flights across the territory.

 “The repeal of such restriction should not be seen as a total deregulation of the brazilian civil aviation market. It is not – by any means – a permission for foreign companies to operate cabotage and/or feeder routes in Brazil”, stated Senator Flexa Ribeiro. “The intention here is to prompt direct foreign investment, i.e. that foreing companies establish themselves here, paying taxes and creating new jobs, totally subject to the same national legislation currently enforced to the already existing operators.

 Mr. Eduardo Sanovicz, the current chairman of ABEAR (Brazilian Association of Air Services Operators) says he was also surprised by the short notice inclusion of the matter on the MP’s draft. “That has not been a request from our side. The theme had not been discussed by the companies”, says he. “ABEAR has, nonetheless, been always favourable to the expansion on foreign capital investment limis. It is a reasonable concept. Besides being allowed to establish its subsidiaries here, foreign companies also need freedom to choose their own investors, either national or foreign.

 Airport – Another alteration on the CBA opens possibilities for the construction of São Paulo’s third airport, in Caieiras, a joint project by Camargo Correa and Andrade Gutierrez construction companies and which will demand investments of up to R$ 9 billion (US$ 3.6 billion). Current legislation poses obstacles to the commercial exploitation of private aerodromes, thus preventing the project from being viable. The new text creates specific directives in order to enable private organisations and its investors to obtain permit to construct and manage airports, thus making them available to airlines, air taxis and/or private operators. Such provision was already expected, though it had not been inserted on MP 652’s text until yesterday. 

*Original link (Portuguese only):  http://economia.estadao.com.br/noticias/negocios,congresso-inclui-liberacao-de-capital-estrangeiro-em-novo-plano-de-aviacao,1591436)

 

 

Brazilian Congress repeals foreign capital restrictions on new Civil Aviation Plan - by “O Estado de São Paulo” (partial translation)

3rd of february, 2014-02-03
by Fábio Pupo - São Paulo, Brazil

The first airports transferred by brazilian authorities to private groups had a strong growth on passenger demand along 2013, the first year of private management. The concessionaires managed to atract towards Guarulhos (IATA: GRU), Campinas-Viracopos (IATA: VCP) and Brasília (IATA: BSB) 4.3 million travellers more than along the previous year, in an expansion movement of 7.5%. Meawhile, the total amount spread amidst the 63 federal airports managed by state-controlled giant Infraero has fallen by 0.6%.

The rise on passengers numbers happened even before the expansion and remodeling construction initiatives and - for that reason - has significantly overloaded and overcrowded most of the already troubled existing terminals. Apart from the natural evolution of the largest airports, the concessionaires have set forth strategies to increase revenues, right from the beginning of their operations. In the case of Guarulhos' (Sao Paulo Intl') manager - GRU AIRPORT -, controlled by the Invepar consortium, the strategy adopted was to increase the number os slots, especially towards the attraction of more new airlines. Seven new companies begun to operate in Guarulhos along 2013, US Airways among them. The second most important measure was to prompt companies to employ bigger capacity aircraft. Such measures made passenger movement in GRU jump to 36 million in 2013, a 9.8% growth in comparison to the previous period.

In Brasília-DF, managed by INFRAMERICA - jointly controlled by Engevix and Argentina's Corporación América -, passenger movement grew 4.5, towards 16.6 million. A great deal of such evolution was verified along 2013's last two quarters. Two new airlines - Aerolíneas Argentinas and Air France - commenced their operations at the brazilian federal capital's international airport. Besides, the airport attracted an additional 8% of new domestic connections. Those expansion movements were punctuated by a lot of annoyance and discomfort to the airport's users, due to the expansion work itself.

In Campinas-SP, now managed by AEROPORTOS BRASIL VIRACOPOS, controlled by a consortium formed by Triunfo Participações e Investimentos, UTC Participações and Egis, the growth along 2013 was 4.9%, towards 9.3 million passengers. In that particular case, the growth in movement was mainly due to new aircraft docking positions (i.e. bridges and/or apron stands), but also on the wake of the terminal's natural evolution (i.e. reengineering & modernisation investments).

 

 

Valor Econômico - Brazilian privatised airports atract over 4 million new users along 2013

Juscelino Kubitschek Intl' Airport in Brasília-DF - one of the first 3 large brazilian airports privatised in 2012.

The aforementioned report was published and distributed as of February 2013. Some names occupying public post-holder positions are no longer the same, as well as some large airports - therein mentioned as managed by INFRAERO (brazilian government's airport management company) - have now been privatised. Bottom line is: Brazilian Airports infrastructure is still very deficcient, even to serve regular public air transport, which is the country's social priority # 1. As an introduction to our articles, we have listed the following excerpts:

 1)- "...It is now obvious that Brazil had neglected its infrastructure, particularly in the transportation sector...";

2)- "...Brazil’s airports are operating above their capacity limits. In fact, in only 8 years from 2003 until 2010, the number of passengers at Brazilian airports has more than doubled (+117%). Investments made by Infraero, the federal agency in charge of airport operations, have by far not matched the ever in-creasing passenger numbers. In fact, almost all important airports in Brazil are regarded as having reached a critical level in terms of average occupation, and it is obvious that large amounts of capital need to be invested quickly..."

3)- "...Given the size of the challenge, the option of allowing private investors to provide the needed resources was considered. On February 6, 2012, long-term concessions for three im-portant airports were granted to private investors (but Infraero still holds a share of 49% in each of the airport concessions)..."

4)- "...The signing of an “open skies agreement” with the EU (March 2011) may lead to further increases of international flights. However, the increase in domestic air travel has been far more impressive and important. Compared to Europe, where air travel is mostly international, in Brazil 90% of passengers are domestic..."

5)- "...Brazil has also a quickly growing fleet of private and executive aircraft and helicopters. The Brazilian Association of General Aviation (ABAG) counted 9800 conventional airplanes, 1654 helicopters, 953 turboprop and 623 jet aircraft at the end of 2011. The infrastructure for general aviation comprises 2877 private airfields, apart from 720 public airports..."

6)- "...While Brazil is not part of the WTO agreement on public procurement, Infraero nevertheless issues international ten-ders, which can be found on their official website. In order to place a bid, foreign companies need to be associated with a Brazilian company or have a branch in the country. A local partner is essential anyway to understand Brazil’s business culture and bureaucracy..."

* You can download the original document in .pdf format through the link:

http://www.s-ge.com/de/filefield-private/files/55132/field_blog_public_files/14662

 

 

Airport Investments in Brazil (excerpts)- by OSEC - Business Network Switzerland

Source: www.infraero.gov.br

As far as brazilian General Aviation's situation is concerned, especially regarding bizjets and executive helicopters: The lack of physical space (as well as poor air traffic management, together with distorted political views) have chased Corporate Aviation out of the main central airports and pushed it towards peripheral airfields with shorter runways, poor radio aids & communication (if any), no control towers etc., which (finally!) made some companies, politicians and the government to wake-up for the problem and start working towards solving the system's various deficiencies.

Humble airfields, originally built for single engine and piston twins (Cessna Citations or old series Learjets, at the most) were now receiving frequent operations of huge corporate aircraft such as the Embraer Legacy, Falcons,  Gulfstreams and Bombardier Global Express series. That has drawn authorities' attention for the need of improvements in almost  each and every aspect, i.e. reinforcements on runways' pavement strength (PCN), taxiways and tarmacs; certification of instrument approaches where previously non-existent; construction of bigger and more sophisticated hangars; VIP facilities, as well as implementation of a wide-array of support services, such as field maintenance, aircraft cleansing, catering, handling tools & machinery (tugs, towbars, GPU's, LPU's) and so on.

* There is still a lot to be done in many of those airports, else both local and federal authorities have already made clear it is all up to private initiative to take care of the improvements and then manage such properties. 

* There are also opportunities to build new airports and/or aerodromes (Fly-In's and/or cargo/logistics specific hubs, just to mention the two most important).

Earlier seen solely as a "privilege of the rich & famous", General Aviation is where new pilots get their basic (and even some advanced) training, prior to join an airline or even a big corporate department. Corporate Aviation, one of General Aviation's main branches, detaches executives (whose time is extremely expensive) to remote sites,  in order meetings can be accomplished and important deals can be closed (often to places not served by commercial aviation, allegedly "due to lack of public demand"). Corporate Aviation pays better, trains better and circulates as much capital (or even more than) as commercial transport. US NBAA's moto - regarding corporate aviation usage - is: "No Plane, no Gain". 

 * For more information and consulting regarding investment opportunities on Brazilian Airport Infrastructure, please Feel free to call us:

Tel./Fax # +55 (22) 2629-1270

Mob Ph # +55 (22) 9 8125-9440

E-mail: captotero@lhtaviationconsultant.com

 

General Aviation - the migration towards small airfields in Sao Paulo and Rio de Janeiro

SDCO - Sorocaba-SP, in Sao Paulo's metro area, is one of the most disputed airports among corporate/VIP operators. Three huge Maintenance Centres (Embraer, Dassault & Gulfstream) have their facilities there.

As far as brazilian General Aviation's situation is concerned, especially regarding bizjets and executive helicopters: The lack of physical space (as well as poor air traffic management, together with distorted political views) have chased Corporate Aviation out of the main central airports and pushed it towards peripheral airfields with shorter runways, poor radio aids & communication (if any), no control towers etc., which (finally!) made some companies, politicians and the government to wake-up for the problem and start working towards solving the system's various deficiencies.

Humble airfields, originally built for single engine and piston twins (Cessna Citations or old series Learjets, at the most) were now receiving frequent operations of huge corporate aircraft such as the Embraer Legacy, Falcons,  Gulfstreams and Bombardier Global Express series. That has drawn authorities' attention for the need of improvements in almost  each and every aspect, i.e. reinforcements on runways' pavement strength (PCN), taxiways and tarmacs; certification of instrument approaches where previously non-existent; construction of bigger and more sophisticated hangars; VIP facilities, as well as implementation of a wide-array of support services, such as field maintenance, aircraft cleansing, catering, handling tools & machinery (tugs, towbars, GPU's, LPU's) and so on.

* There is still a lot to be done in many of those airports, else both local and federal authorities have already made clear it is all up to private initiative to take care of the improvements and then manage such properties. 

* There are also opportunities to build new airports and/or aerodromes (Fly-In's and/or cargo/logistics specific hubs, just to mention the two most important).

Earlier seen solely as a "privilege of the rich & famous", General Aviation is where new pilots get their basic (and even some advanced) training, prior to join an airline or even a big corporate department. Corporate Aviation, one of General Aviation's main branches, detaches executives (whose time is extremely expensive) to remote sites,  in order meetings can be accomplished and important deals can be closed (often to places not served by commercial aviation, allegedly "due to lack of public demand"). Corporate Aviation pays better, trains better and circulates as much capital (or even more than) as commercial transport. US NBAA's moto - regarding corporate aviation usage - is: "No Plane, no Gain". 

 * For more information and consulting regarding investment opportunities on Brazilian Airport Infrastructure, please Feel free to call us:

Tel./Fax # +55 (22) 2629-1270

Mob Ph # +55 (22) 9 8125-9440

E-mail: captotero@lhtaviationconsultant.com

 

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02.06 | 14:33

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