Jetrader - January/February 2011 - 9

State of the Regions

Latin America

Tomorrow’s Market is Here Today

F

New Boeing 737s destined for Brazil’s successful low-cost operator, GOL, are seen here awaiting a multi-airplane delivery event at the manufacturer’s Seattle facility. (Boeing photo)

From the time not long ago when this landmass of nearly 8 million square miles and home of more than 580 million people was thought of as the last stop for airplanes that others didn’t want, Latin America today is “prime time” for aircraft investors and ﬁnanciers looking for opportunities in what is becoming a world-class airline environment. In its 2011 edition of its annual and respected Current Market Outlook, aircraft maker Boeing raised its 20-year worldwide ﬂeet forecast to 30,900 new airplanes. It included a one-third increase for Latin America, fueled by the region’s faster-than-average projected air travel growth over the next two decades (See Chart 1). “We took a look at the global recession and saw many regions of the world drop dramatically with both lower yields and trafﬁc,” said Van Rex Gallard, Boeing Commercial Airplanes sales vice president for the region and a veteran of the airplane sales and trading industry. “In Latin America, large parts of the region actually did well through that. Growth slowed down and yields were hit, but they

still managed to maintain some proﬁtability as a whole and they continue to grow.” According to Gallard, South America is the region’s primary growth engine. In fact, its air travel market is expected to climb to the seventh largest on Boeing’s list of world air travel regions by 2029. “As the economies improved, the region has grown dramatically,” Gallard said. “We’ve seen Brazil grow, Mexico snap back along and other improvements generally across Latin America. So as the consumer middle class grows, we are seeing a lot more travelers in the region. So we took a good look and asked what that means for their airplanes, and we raised our projections over 30 percent for what we think is the 20-year airplane demand.”

A Developing Fleet
Compared to past history, the region today is distinguished by having one of the world’s youngest airline ﬂeets, a byproduct of Jetrader 9

Jetrader - January/February 2011

Table of Contents for the Digital Edition of Jetrader - January/February 2011

Jetrader - January/February 2011
A Message from the President
Table of Contents
Calendar/News
Q&A: Joe Ozimek
In Memory of Morten S. Beyer
State of the Regions: Latin America
Trends in Aircraft Values
Fleet Renewal Activity: A Rising Influence in the Aircraft Market
Aircraft Appraisals
Fixin’ the System
Aviation History
Advertiser.com/ Advertiser Index
Jetrader - January/February 2011 - Jetrader - January/February 2011
Jetrader - January/February 2011 - Cover2
Jetrader - January/February 2011 - A Message from the President
Jetrader - January/February 2011 - 4
Jetrader - January/February 2011 - Table of Contents
Jetrader - January/February 2011 - Calendar/News
Jetrader - January/February 2011 - Q&A: Joe Ozimek
Jetrader - January/February 2011 - In Memory of Morten S. Beyer
Jetrader - January/February 2011 - State of the Regions: Latin America
Jetrader - January/February 2011 - 10
Jetrader - January/February 2011 - 11
Jetrader - January/February 2011 - Trends in Aircraft Values
Jetrader - January/February 2011 - 13
Jetrader - January/February 2011 - 14
Jetrader - January/February 2011 - Fleet Renewal Activity: A Rising Influence in the Aircraft Market
Jetrader - January/February 2011 - 16
Jetrader - January/February 2011 - Aircraft Appraisals
Jetrader - January/February 2011 - 18
Jetrader - January/February 2011 - Fixin’ the System
Jetrader - January/February 2011 - Aviation History
Jetrader - January/February 2011 - 21
Jetrader - January/February 2011 - Advertiser.com/ Advertiser Index
Jetrader - January/February 2011 - Cover3
Jetrader - January/February 2011 - Cover4
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