Airbus Sees $82bn A380 Demand in Brazil
Brazil will need 701 new aircraft valued at about $82 billion in the next 20 years to meet surging domestic demand.
Airbus, the world’s largest aircraft maker, aims to sell as many as 26 A380 super-jumbo jets in the South American nation, says Rafael Alonso, executive vice president for Latin America and the Caribbean. The Toulouse, France-based company controls about 60% of the market in Latin America, and Brazil accounts about half its sales, he says.
“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.
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% of the market, with Boeing controlling the rest, Alonso said.
Orders
Airbus has already sold 37 units of its A350 model in Latin America, 27 of which were purchased by Tam SA (TAMM4), 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.
