Story ID: 468 Bombardier Brazil.doc
Bombardier’s Large Cabins Prosper in Brazil
By: David Donald
Caption: Sales of Bombardier’s large-cabin aircraft have held up well in Brazil, despite the nation’s economic difficulties
Word Count: 372
Over the last 12 months, Bombardier has seen its sales in Brazil remain steady, despite the economic realities faced by the country. Although small-cabin aircraft such as the Learjet 75 on display at the LABACE show continue to garner sales, the main contributions to the order book have come from the larger, longer-range aircraft, such as the Challenger 650 and the Global family.

Currently Bombardier has 145 aircraft operating in Brazil, representing a market share of roughly 20 percent. The nation represents the second largest business aircraft market in Latin America, trailing Mexico, where around 250 Bombardier jets are operational. Recently Mexico has seen a major upturn in its economy, closely allied to the resurgence in fortunes in the neighboring U.S. Bombardier reports that markets are picking up in Colombia, Guatemala and Panama, too, but that turnaround has yet to reach Brazil.

Bombardier (see page 13) has managed to maintain its sales position in the country primarily through large-cabin aircraft. Buyers of aircraft such as the Global series are typically larger, mature corporations that are less sensitive to short-term economic fluctuations, and their stability more easily permits long-term investments in corporate aircraft.

Furthermore, as domestic business falls off, many such companies are increasingly looking outside of Brazil for more opportunity. Long-range aircraft that can reach the U.S. provide a vehicle for increased overseas trade in the world’s major markets, while also facilitating access for Brazilian companies to less developed markets, such as Africa.

The Canadian manufacturer has a robust support and sales network to accommodate its market in Brazil. Lider Aviacão is the local agent, supported by Bombardier sales representatives based in São Paulo. A regional support office is also located in the city, co-ordinating the activities of maintenance centers and the large spare parts inventory that is maintained in Brazil.

Bombardier currently has no plans to create a major service center in Brazil, and for the time being, most servicing activity is performed at facilities in Mexico or the southern U.S. However, the company routinely monitors the local market and fleet to ensure that the existing network continues to meet the needs of local customers, and to improve if necessary.