As the world moves toward a global economy, opportunities for international growth will continue to emerge.
With so much demand around the world for aviation, emerging markets all require dedicated facilities, improved infrastructure, simplified procedures, removal of restrictions and streamlined laws to grow.
This post shares some of the latest information on 3 of the top emerging national economies to consider for International growth.
BRICS: the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
Doing Business in Brazil:
One country to keep your eye on is Brazil. Once the envy of emerging markets, due to explosive growth from 2000 to 2011, the country is now recession and going through a period of painful adjustment as it seeks to recover. While Brazil’s economic performance in 2015 was feeble and unemployment remains high, the country still has the largest GDP of all Latin American countries, and she is determined to return to her former place at the top of world economies.
Aviation business in Brazil deals with all aspects of the industry including design and manufacturing, sales, customer support, and maintenance. Aircraft manufacturer Embraer, headquartered in São José dos Campos, is the third-largest commercial aircraft producer in the world.
Due to the size of the country, which is almost as large as the US in sq. miles, air transportation is crucial to Brazil’s economy. It’s 4,650 miles of coastline, supports offshore oil and gas exploration, and its congested cities, make helicopter travel a necessity for many.
Brazils rapid growth in recent years, followed by recession, has put a strain on airports and surrounding infrastructure. However, the country’s commitment to improving the industry makes the GA sector an excellent area for investment for international growth.
Aviation in India:
India is becoming a big player on the global aviation field. With favorable demographics and rapid economic growth, the country is considered one of the most promising markets for the civil aviation industry, and thus they are getting a lot of attention from major manufacturers. Both Boeing and Airbus claim India will need nearly 1800 new aircraft valued at $240 Billion to meet growing demand.
Across the nation, general aviation is growing faster than aviation as a whole, as high net-worth individuals aspire to own their own aircraft or participate in fractional or charter operations. According to The Economist Intelligence Unit, India might host 411,000 millionaires by 2017, making the nation one of the world’s fastest markets for international growth. As more business aircraft are based in India, more opportunities are opening for GA companies to serve the needs of bizav operators.
Flying High in China:
Despite its current market volatility, China’s economic success story over the past 30 years captured the world’s attention and returned the country to a leading global economy. Moving forward, Boeing expects China’s aviation needs to grow at 5% per year, resulting in a need for 6,330 new airplanes, 226,000 new commercial airline pilots and 238,000 new technicians in the Asia Pacific region through 2034. The outlook for freight hauling aircraft is even greater, at 50 percent, as express package transport grows in China. Boeing forecasts, by 2030, China will be the largest domestic aviation market.
China has made tremendous strides in opening its airspace to accommodate GA activity. However, the government is still deep in transition and the pace of regulatory change is difficult to monitor. For GA companies seeking International growth opportunities in China, it is crucial to work with an experienced team with in-country connections.
International Business Growth
As world economies gain new heights at an accelerated pace, the demand for general aviation will continue to grow, and opportunities will abound for companies positioned to join the jet stream to international growth. However, conducting business across borders involves many cultural and administrative complexities wherever you go.
In many emerging markets, officials – not elected by the people – run the economy. Therefore, the priorities of the people are often not part of the decision-making process.
Always seek advice from experts familiar with the country before investing. Working with an experienced team with strong in-country connections will streamline the process and save you a ton of headaches.