Evolution and development of the Brazilian airline sector

Transcription

1 Evolution and development of the Brazilian airline sector Industry report partial free sample Sao Paulo, October 2016

2 The industry has grown in paid passengers, although the distance flown has oscillated and the use of capacity seems to be increasing Recent evolution of the main indicators of the Brazilian commercial airline sector Number of kilometres flown [millions] Use of capacity [%] Paid passengers boarded [mn] Domestic International 2007 Note: Figures reviewedd in September 2016 Source: ANAC, Aviação Comercial, FALKE Information analysis 2

3 The airline fleet resumed growth in 2006 with more intensive use - Brazil's Embraer gained market share among manufacturers Evolution and composition of the Brazilian commercial airline fleet Evolution of the commercial airline fleet Fleet breakdown per manufacturer km flown per airplane [millions] 1, Others Embraer ATR Fokker Airbus Boeing E Note: Figures reviewedd in September 2016 Source: ANAC, Aviação Comercial, FALKE Information analysis

4 While Varig collapsed and was incorporated in 2007, Latam took over as new market leader from 2006, followed closely by Gol and by Azul Flown passengers and kilometres breakdown per airline company Passengers flown [millions] Kilometres flown [ 000] Azul 4,123 3,811 3,991 3,917 3,783 3,817 4,081 4,637 4,176 Others Azul NOTE: Varig was incorporated by Gol in 2007; Figures reviewed in September 2016 Source: ANAC, Aviação Comercial, Falke Information analysis & estimates 4

5 According to ANAC, Latam and Gol are quite different in terms of staff structure, which is reflected in their corresponding cost structures Staff and operating cost structure for the top airline companies in 2015 Headcount breakdown Operating costs [as % of gross revenues] Others 85% Latam Gol Total market Pilots and co-pilots Maintenance 5% 22% Flight attendants 0% 10% 30% 18% Traffic and sales Market Operating cost EBIT Gross margin Net income Source: ANAC, FALKE Information analysis 5

6 Infraero is a Brazilian public company responsible for managing 60 airports through 9 regional superintendence offices Presentation of the Brazilian airport management company INFRAERO Brief presentation of Infraero Geographic distribution of Infraero s airports Infraero is a national publicly-owned company with over 40 years of existence. Linked to the Ministry of Defence, it is present in all Brazilian states, gathering a workforce of over 33,000 employees both own and outsourced. Infraero manages Brazilian airports of all sizes. Altogether there are 60 airports, 72 units to support air navigation and 28 cargo logistics terminals. In 2012, Brazil's largest airport (Sao Paulo/Guarulhos) both in passengers and in cargo was sold to the Invepar ACSA consortium, therefore leaving the managerial jurisdiction of Infraero. Other airports concentrate approximately 97% of the commercial air traffic in the Brazilian airline sector. This is equivalent to 2.2 million landings and take-offs of both domestic and international aircrafts, carrying over 180 million passengers per year between 2012 and In the same years, those same airports have handled about 480,000 tons of cargo through imports, exports and in domestic traffic. In addition to that, those airports witnessed around 132 million passengers being transported annually on domestic and international flights. Source: Infraero, FALKE Information analysis North 15 airports 12.0 mn passengers Centre-West 5 airports 8.3 mn passengers South 12 airports 24.6 mn passengers Northeast 15 airports 32.5 mn passengers Southeast 13 airpots 35.3 mn passengers 6

7 DISCLAIMER The analysis and recommendations of Falke Information are supported by assumptions considered right and consistent based on the available information. Therefore, Falke Information will not be held responsible for the correctness of the resulting recommendations and analysis in this document. NOTE: Copying and handling over of this document is not allowed without prior written permission by Falke Information 7