The key to aviation success is of course bums on seats and at this time there is no better investment for airlines than improving links to Brazil. Brazil is over the course of the next decade due to hold BOTH of the world’s largest spectator events, the FIFA World Cup (Football) and the Olympics, this means that Brazil will have to invest much in improving infrastructure across the country. Let’s face it, flying in Brazil is at times about as safe as base jumping. It will also mean that the country will need to attract more overseas airlines. This on the face of it should not be difficult. The Olympics has a very impressive track record of boosting tourism well after the event has faded into distant memory, Barcelona is the best example of this. This means that airlines should be looking to secure good slots into Brazil now to ensure that they make the very best of the two sporting events. Brazil at this point should also be credited with having one of the most dynamic and powerful emerging economies with investors flocking to the table whenever the country is mentioned.
All US-based airlines, especially those with good links to Miami should benefit from the rise of Brazil, as should Brazilian domestic carriers. Further a field the likes of TAP Portugal and BA/Iberia should be in a very good position. You can expect BA to be putting on masses of additional flights for the FIFA World Cup as demand out of the UK will be huge. BA may also benefit from leftover Olympic spirit from London 2012. So what of the Middle Eastern giants? Will they fade into the background while the party rolls on over in Brazil? None of it, Emirates you might recall has been quietly increasing its presence between the UAE and Brazil, especially on the cargo side which has seen a 79% increase in traffic over the last two years alone. But what type of passengers will Emirates be shifting? It is likely that Emirates will pop-up all over the place with A380s ferrying the masses under the Emirates banner from all sorts of ports across three continents. So what are the airlines with the current vested interest in Brazil going to do about this? The European flag carriers will rely on the passion of their domestic markets to carry them forward but they need to make very sure that they have the slots to meet the demand for the World Cup, the Olympics and the general rise of Brazil. Virgin Atlantic would be very well placed indeed to invest further in Brazil now to offset the BA/Iberia (and AA?) tie up and stake a claim as a carrier of choice from London to Brazil, maybe this would be a good use of some A380s in the future.
Brazil with its population of 200 million will be pivotal to the future growth of the global economy over the next decade. Make sure you are a part of it!