Brazil’s business leaders–including its business aviation fraternity– are breathing a huge sigh of relief that president Dilma Roussef has finally gone (with today’s impeachment being confirmed in the country’s senate). The certainty that could bring to the economy means many are poised for an upturn in fortunes, and U.S.-based aircraft broker Jetcraft is among companies from outside Brazil looking in and hoping. According to Fabrice Roger, sales director for Latin America, Mexico is by far the main market in his territory–close to the booming U.S. market. And it has a growing economy, even if its currency is as weak as Brazil’s real.
Speaking to AIN today at LABACE minutes before the presidential impeachment was announced, Roger–who is currently based in Mexico–said Brazil has the “double effect of weak currency and low confidence” whereas Mexico is “the key market for us; the fleet is growing and it has lots of buyers and sellers.” The year the company has sold two Globals, a Challenger 605, a Legacy 600 and a Gulfstream 450 in Mexico, “and we have other contracts, so we should sell 10 aircraft there this year.”
In contrast, he said, “The Brazil market is quiet. But it’s temporary.” This explains why this year Jetcraft is not exhibiting here at the show, and does not have any aircraft here. “There’s no point, there are no buyers,” he said, while underlining the importance of being here to maintain close relations with operators and the OEMs.
Roger claimed that Jetcraft has the largest inventory of any business jet broker worldwide, at about 80 aircraft, and although based in Morrisville, North Carolina, it does have worldwide reach–an attribute that allows the company to take aircraft out of a market (such as Brazil) and sell them elsewhere to get better value for sellers, and buyers too. Roger said that provides an important service for OEMs helping them trade out aircraft in new aircraft transactions.
Roger insisted that, “We do not want to be pessimistic on the Brazilian market. We’ve got high expectations of growth here.” He said that overall the company had been doing well worldwide despite economic conditions outside the U.S. “Last year we sold 72 aircraft for $1.7 billion, and this year we sold 43 aircraft in Q1/Q2, worth $900 million.”
His view on Brazil is “there is a true need for private aviation here; Brazil has a higher number of billionaires than in Mexico.” He reflected that there were more aircraft in Mexico but they tended to be older, while the Brazilian fleet was fewer in number, but its value is much higher still.
The company, he said, is unique in its approach, including purchasing and arranging for completing new aircraft itself when it is confident in a particular aircraft type and the market.
Turning back to Mexico, Roger said that it has an AeroExpo show (held in March), but it was small. Most Mexicans head to NBAA, “especially when it is in Las Vegas.” LABACE, meanwhile, has little Mexican presence.
In conclusion Roger said another reason for him being at LABACE is to meet contacts from other South American countries, such as Argentina and Paraguay. Although there are not many exhibiting from these countries. Brazil remains the focus of LABACE under the watchful gaze of ABAG, though Jetcraft was not the only company to express a need to broaden the show and make it more relevant to the whole LATAM region.
