The aviation industry is of great prominence in Brazil. In fact, the aerospace industry of Brazil is the largest throughout the southern hemisphere. The civil aviation industry is important as it links remote areas to the major cities in Brazil. The dependence on this system, along with the country’s policy to spruce up the industry, makes the aviation sector an excellent area for investment. Brazil has many prospects for space technology too.
Embraer, one of the leading manufacturers of both military and civil airplanes, has its base in Sao Paulo. The aerospace sector is worth 300 million US dollars to meet Brazil’s own needs. There is demand for jets, propeller aircrafts and helicopters in this country.
The aviation industry in Brazil deals with all the aspects of the sector. These include design and manufacturing of aircraft, sales, customer support and maintenance. All products pertaining to aviation such as engines and equipments, on-board systems, structural parts, airplanes, and helicopters as well as the air-traffic control systems are available in Brazil.
The Maintenance industry is also prominent in Brazil. Repair and maintenance services are provided to both military and civil aircrafts. All structural modifications, engine checks and overhauls are done here. Most of the companies dealing in this sector are FAA approved for conducting repairs. They are also EASA approved organizations for maintenance. This industry amounts to 1.5 billion US dollars yearly in commercial aviation.
In the case of military aircrafts, specific requirements are kept in mind. These aircraft include weapon systems and equipment. Both guided and non-guided weapons systems can be incorporated in the design. In addition, these aircraft have systems integration too. Thus, Brazil can be looked at by other nations for their defense needs.
In the case of the space segment, Brazil also offers many capabilities. Small satellites, payloads, satellite equipment and structures are available. Propulsion systems, rockets and launchers are also manufactured in Brazil. In addition, services with regard to satellite images and other services are also provided to clients. ITA is the leading institute for research in Brazil.
As the aviation sector grows in Brazil owing to economic progress, there is huge scope for companies dealing in aircraft parts and components. These include helicopters and parts, turbojet engines, avionics and propellers amongst others. There is also scope for air-traffic control and radar systems. In addition, baggage handling and x-ray equipment too will be required. Hence, all companies dealing in these types of equipment can profit from investing in Brazil.
The FDI investment is restricted in the domestic sector. The maximum cap for investment is 20% in domestic airlines. Cargo and passenger services are liberalized between US and Brazil. This is an added advantage for US companies to invest in this sector.
Brazil also encourages innovations in this field. Hence, research-oriented companies can look at investing in the Brazilian market. It is technologically advanced and is highly competitive. Investment in the aviation sector can thus be a smart move for investors who can then tap into the immense potential of this sector.