According to noted industry observer Brian Foley, despite the recent weak economic performance of Brazil and Mexico, other countries such as Argentina are performing better and this is being reflected in demand for business aircraft.

“Before investing in aircraft, individuals have to feel wealthy by virtue of rising personal portfolios, and businesses must have confidence and a supporting balance sheet,” said a pre-LABACE statement from Brian Foley Associates. So far this year, pointed out Foley, Brazil’s stock market has lost a quarter of its value and Mexico’s has declined by almost 10 percent, while Argentina has risen by 10 percent and Venezuelan shares are up an astonishing 165 percent.

The good news is that although the previous market leaders have temporarily been sidelined, there are others that are now rising to the occasion,” Foley said. “This economic diversity in the region makes for a more stable and consistent market overall.”

Due to the “sagging” in Brazil and other BRIC economies (Russia, India and China), Foley suggests that demand for large-cabin business jets, of which these countries have proved “fond,” will “cool a bit.”

According to business aviation market research group Amstat, the Latin and South American business jet fleet grew by 6 percent last year. Foley notes that large cabin business jets led the way, increasing by 12.5 percent, while light and medium-cabin jet populations grew by around 5 percent. It describes this as an “uptick,” noting that it was reflected in helicopter and turboprop aircraft growth too (these segments recorded 6.4-percent and 5.0-percent growth, respectively). High value twin-turbine helicopters increased most in popularity, pushing up 9.3 percent.

Foley concludes that “Latin America operates on a somewhat different economic cycle: when Europe, North America and the Middle East were reeling from an economic crisis, Latin America helped to moderate the blow by steadfastly increasing its business jet fleet.”