Targeting agribusiness, Brazil’s Amaro Aviation intends to change how the wealthy travel

RIO DE JANEIRO, BRAZIL – Created by the son of TAM’s founder, Amaro Aviation aims to become Brazil’s NetJets – the plan is to reach 30% of the shared-ownership aircraft market in Brazil in 7 years.

Do you need a small jet to go where commercial airlines can’t? Just pick up the phone, give us your itinerary, and the aircraft will be at your disposal in a few hours. As simple as that, hassle free.

This is the proposal of Amaro Aviation, a new airline founded by Marcos Amaro, son of TAM’s founder Captain Rolim, which this week received its first shared-ownership jet – a new business model that is flourishing in Brazil.

In February this year, the National Civil Aviation Agency (ANAC) regulated the shared ownership of aircraft in Brazil, opening the way for a market that is enormous abroad – Warren Buffet’s NetJets, the industry giant in the U.S. and Europe, has a 750-aircraft fleet.

Despite its success and the new Brazilian regulations, NetJets has no plans to enter Brazil. That’s when Marcos Amaro realized the opportunity, and invited 5 other big names in aviation to join the company.

“Until February, before the new legislation, all ‘owners’ of a shared-ownership aircraft were jointly liable for any problems that might occur, which made the model unattractive,” explained David Barioni, Amaro Aviation’s partner and CEO.

“Now, there is an aircraft administrator, which is us. Operation, maintenance and all obligations related to the aircraft are our responsibility. And the co-owner doesn’t need to worry about anything.”

New business model

In the case of airplanes, such as the Pilatus C-24, which carries 8 passengers and 2 crew with a range of 3,600 kilometers, ownership can be shared by up to 8 people, who pay US$1.7 million dollars for each quota, in addition to a proportional amount for the hours flown.

When the aircraft is no longer needed, co-owners may resell their quota to someone else or, in some cases, return it to Amaro, which is responsible for passing it on. The only concern, in fact, is with business.

“With this new business model, people will understand that you don’t buy an airplane, but time and convenience. This is what we are selling,” Barioni says, estimating that in 7 years business aviation will be operating about 450 aircraft in Brazil, with 30% of them under Amaro’s management.

“We want to convert this into a transportation commodity, as has occurred elsewhere in the world. Our potential customers are people who want to take their business into Brazil. It’s the agribusiness individual, the entrepreneur, but also performers and athletes who have time constraints.”

From the hangar to anywhere

Given the traditional baptism that welcomes new aircraft and companies at airports worldwide, the Pilatus C-24 is the first to integrate Amaro’s fleet, which in the coming months will also receive the model’s younger brother, the Pilatus C-12 turboprop – which costs less, “only” US$800,000.

Both aircraft enable users to get to virtually any location in Brazil, as they can operate even on unpaved runways – which account for 43% (or 2,500) of the 4,400 runways in Brazil.

In addition to shared ownership, Amaro also offers fleet management services to people who have their own airplanes, and will soon offer air taxi services, but its base will be the São Paulo Catarina airport in São Roque.

Built by JHSF at km 60 of the Castello Branco highway (15 minutes away from São Paulo by helicopter), the millionaires’ airport boasts a 2.4km runway (500m longer than Congonhas) and a super VIP terminal, signed by Triptyque Architecture.

Last week, the airport was granted ANAC authorization to operate international flights.

Source: Exame