Bloomberg News

Airbus Sees A380 Demand in $82 Billion Brazil Plane Market

November 17, 2011

(Updates with parent company shares in last paragraph.)

Nov. 16 (Bloomberg) -- Brazil will need 701 new aircraft valued at about $82 billion in the next 20 years to meet surging domestic demand, Airbus SAS said.

Airbus, the world’s largest aircraft maker, aims to sell as many as 26 A380 super-jumbo jets in the South American nation, said Rafael Alonso, executive vice president for Latin America and the Caribbean. The Toulouse, France-based company controls about 60 percent of the market in Latin America, and Brazil accounts about half its sales, he said.

“In the past few years, Latin America has been the only region in the world where airlines have been profitable,” Alonso said yesterday in an interview at Bloomberg’s Sao Paulo office.

Brazil, which will host the soccer’s 2014 World Cup and the 2016 Olympic games, is working to boost air-traffic capacity as more people travel by air. The A380, the largest passenger plane ever built, can help ease congestion in airports such as Sao Paulo and Rio de Janeiro by delivering more passengers in fewer planes, Alonso said.

There are currently no A380s flying to or from Latin America. The plane has a price tag of $375.3 million and the capacity to transport about 800 passengers.

Airbus aims to surpass Boeing Co. as the market leader for wide-body planes in the region. Twin-aisle jets provide higher profit margins for manufacturers. In Brazil, Airbus has 47 percent of the market, with Boeing controlling the rest, Alonso said.

Airbus Orders

Airbus has already sold 37 units of its A350 model in Latin America, 27 of which were purchased by Tam SA, Brazil’s largest airline by market value. The wide-body A350’s first delivery is now due in 2014’s first half, six months later than planned, and has a list price of $236.6 million to $299.7 million.

Airbus also has 75 orders for its single-aisle A320neo in Latin America, including 22 to be delivered to Tam. The A320neo is the latest version of the company’s top-selling plane.

By 2030, Brazil will be the fourth-largest domestic aircraft market after the U.S., China and India.

Shares of Airbus’s parent company, European Aeronautic Defence & Space Co., rose 0.1 percent to 22 euros in Paris trading.

--Editors: Jessica Brice, Ed Dufner.

To contact the reporter on this story: Jose Sergio Osse in Sao Paulo at josse1@bloomberg.net

To contact the editor responsible for this story: Jessica Brice in Sao Paulo at jbrice1@bloomberg.net


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus