Brazilian General Aviation

Challenges and Opportunities

EBACE, May 2011

Brazil

As big as the continental US, (8,514,876 Sq Km/ 328,911 Sq Mile) Brazil has 5,564 cities, of which only 124 have scheduled commercial air service. US has services to 500 cities.

Brazil represents 5% of the world market for business aviation and KDVWKHZRUOGVnd biggest Business Aviation fleet.

Brazil by BART Magazine (April 2011)%UD]LOVIOHHWKDVJURZQEXVLQHVVDLUFUDIWLQPRQWKVincrease over last year.

Infrastructure

Only 18% of aerodromes are paved, allowing their use for scheduled flights and BA, while the other 72% can only be used by smaller General Aviation aircraft.

Brazilian airport infrastructure is composed of 4,072 aerodromes (2nd in the world):

Airports with paved runways:Total: 726 Over 3,047m: 7 2,438 to 3,047 m : 28 1,524 to 2,437 m: 176 914 to 1,523 m: 460 Under 914 m: 55 (2010)

Airports with unpaved runways:Total: 3,346

1,524 to 2,437 m: 87 914 to 1,523 m: 1,617 Under 914 m: 1,642 (2010)

World fact book, 2010

The busiest aerodromes for General Aviation are in the metropolitan areas of So Paulo, Rio de Janeiro, Curitiba, Goinia and Belo Horizonte.

Source: ABAg Intel - Dec/10

Infrastructure

Brazilian FleetThe General Aviation fleet is composed of 12,614 aircraft. It grew 6% from 2009 to 2010. According to BART magazine, the BA fleet has grown by 215 aircraft from last year.

Brazilian Fleet - Engine.

So Paulo has become the largest helicopter fleet of any city with 452 rotary-wing aircraft.

Engine n. aircraftPiston 9338Helicopters 1495Turboprops 863Jets 540Others 374

Brazilian Fleet - UsePrivate Business Aviation represents 62% of the Brazilian fleet

7KHVHFRQGODUJHVWDLUFUDIWFDWHJRU\LV$LU&KDUWHUZKLFKLQFOXGHVairplanes and helicopters. This market is estimated at US$ 220 million in 2011.

Use n. aircraftPrivate Aerial Service 7835Air Taxi 1536Instruction 1406Agricultural aviation 1071Others 766

Brazilian Fleet - AgeThe profile of the fleet under 5 years old has shown a steady increase in the market share by helicopters and jets. In the last 5 years, every month two new jets and 5.4 helicopters were added to the fleet.

Challenges Infrastructure: saturated capacity..;

Competition with scheduled commercial aviation for use of metropolitan airports;

Development of skilled labor force;

Simplify regulations to ease parts importation, thus reducing aircraft maintenance time.

Opportunities Investment in aerodromes dedicated to

Business Aviation;

Renewal of the fleet;

Offer specialized services to help the growth of General Aviation.