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Future Growth Potential and Analysis of Commercial Aerospace after COVID-19
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South America has experienced significant growth in the last 10 years, but it was focused only on specific countries. Driven by the Brazilian market, the continent has experience an influx of new destinations, especially from the North American market.The low average income GDP per capita is a significant deterrent, and the complicated political framework and high cost of operations for air services make South America a challenge for most international carriers. The lack of communication between governments, and the failure of the Mercosur as a political binding association, makes the regional market in the continent one of the underperformers of the globe. The constant swing in government policies from populism to liberalism makes it impossible to maintain coherent policies over a long period of time, thus stopping private investment firms from developing infrastructure in the continent.One of the clear examples is Argentina, in which its centralized government and protectionist policies avoid creating competition for the national carrier Aerolineas Argentinas, and create a huge gap of service and loss of revenue for the aeronautical industry in the country.On the other hand, Colombia’s challenging geography makes it an extremely well-connected market, which year after year posts better traffic numbers and COVID-19, beyond the natural global halt, will not alter this trend in the next couple of years. The continent has much to offer from a business and tourism perspective, but actions promoted by governments and associations, such as ALTA and IATA will be fundamental for the further development of the market after COVID-19. Questions this study will answer include:• Who are the main stakeholders in the commercial airline market?• What is the current market status in terms of economy, growth, and social improvements?• What are the next steps that might disrupt the South American air transportation system?• What are the key growth opportunities for the commercial aerospace industry in South America?Conclusions of this study:• Airline suggested changes to frequent flyer programs• COVID-19 impacts and opportunities• MRO current statistics after COVID-19Who will benefit from this study?• OEMs• Public transportation administrations or ministries• Investment groups• Airline executives• MRO service providersAuthor: Jonathan Norman
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