EDUARDO HENN BERNARDI

SEPTEMBER 2018

BRAZILIAN CIVIL AVIATION OVERVIEW

CIVIL AVIATION SECRETARIAT

– BRAZILIAN CIVIL AVIATION –

INSTITUTIONAL FRAMEWORK

MINISTRY OF TRANSPORT, PORTS AND CIVIL

AVIATION

MIN. OF DEFENSE

INFRAERO ANAC

Independent Agency

Formulation of Public Policies; Planning and Guidelines

Governmental Coordination

Airport Concessions Plan

Manager of the Brazilian Civil Aviation Fund (FNAC)

•

•

•

•

State-owned airport authority

•Technical and Economic Regulation

Monitoring and Enforcement

•

•

Military Aviation

Air Navigation Services Provider and Regulation

•

•

CONAERO

MAJOR GAINS

Improving Infrastructure Utilization

Ease of communication

•

•

Centralized consultation forum

Coordinated Actions

•

•

Information integration

Integrated Planning

•

•

MIN. OF AGRICULTUREMIN. OF JUSTICEMIN. OF FINANCE

MIN. OF HEALTH

MIN. OF PLANNING

AND BUDGET

MIN. OF DEFENCE

CIVIL AVIATION

SECRETARIAT

CIVIL AVIATION

AGENCY

Decree Nº 7.554, in August 2011

– NATIONAL AIRPORT AUTHORITIES COMMISSION –

CONAERO

20051990 20152000 2010

2001: The 5th CONAC promoted the extinction of SITAR

allowing new companies to emerge.

2006ANAC is Created

2009: Greater flexibility in civil aviation and private

sector participation

1991Extinction of regional monopolies with thebeginning of the flexibilization of Brazilian air transportation

2001Domestic air fare freedom

2017Air transport general conditions reviewed.

2018+Increase foreign capital

in airlines by 100%

2017: Baggage allowances

2009National Civil

Aviation Policy

2010Air fare freedom for international flights

– MAIN REGULATORY MEASURES –

TIMELINE

2020

AIRPORTS X ROUTES

0

100

200

300

400

500

600

700

800

900

0

20

40

60

80

100

120

140

160

180

200

Number of airports and routes served by commercial flights

Airports Routes

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

– EVOLUTION OF –

DOMESTIC AIR FARES

(R$)

2002 - 2017

49% reduction

0

100

200

300

400

500

600

700

800

900

357,16

703,07

816,53

– MARKET AND INFRASTRUCTURE –BRAZILIAN AIR FLEET

Others0,5%

Avianca

12,8%

Azul

18,2%

Latam

32,5%

Gol

36,0%

Schedule Flights

Airplanes

479

14.891Airplanes with

Brazilian Registration

in airworthy condition

81REGIONAL

30METROPOLITAN

111Receiving Schedule Flights

1.961PRIVATE OWNED

605PUBLIC AIRPORTS

18 Domésticos12 Internacionais

– MARKET AND INFRASTRUCTURE –BRAZILIAN AIRPORTS

2018 2023 2028 2038

CAPACITY LIMIT 272,8 272,8 272,8 272,8

DEMAND FORECASTING 182,3M 220,6M 282,8M 401,0M

800M

400M

200M

2017 2028 20382008

600M

HISTORICAL DEMAND PROJECTED DEMAND

Average annual growth rate:

6.51% (2003-2016)

Average annual growth rate:

5.16% (2017-2037)

CAPACITY LIMITCAPACITY LIMIT20282028 CAPACITY LIMIT2028

– BRAZILIAN REGULAR PASSENGERS –

20 AIRPORTS RESPONSIBLE FOR 90% OF DEMAND

2018 LIMIT

2018CAPACIDADE

LADO AR

2028CAPACIDADE

LADO AR

2038CAPACIDADE

LADO AR

2018CAPACIDADE

LADO TERRA

2028CAPACIDADE

LADO TERRA

2038CAPACIDADE

LADO TERRA

CENÁRIO ZERO SEM INVESTIMENTOSCAPACITY

X

INVESTMENTS

National Air

Planning - PAN

National Air

Planning - PAN

National Air

Planning - PAN

ObjectivesCivil Aviation

Sector

Objectives related - Airports net

ACCESSIBILITY CONNECTIVITY EFFICIENCY DEVELOPMENT• Population up to 60min

• Population up to120min

• Amazon Region

• Touristic Places

• Existing routes

• Potencial routes

• Travel time

• Investments/pax

• Sustainability

• Market profitability

• Potencial demand

Strategic Objectives

SAFETY/SECURITYOPERATIONAL

EFFICIENCYPASSENGER RIGHTS

RESPECTED

QUALITY & FACILITYENVIRONMENTAL

PROTECTION

TECHNICAL IMPROVEMENTS

NATIONAL AIR PLANNING

33 REGIONAL B

28 METROPOLITAN

CATEGORIES

90 REGIONAL A

478 COMPLEMENTARY

22 MET. COMPLEMENTARY

REGIONAL PRIMARIES (A)

REGIONAL SECUNDARIES (B)

METRO-

POLITAN

PRIMARIES

METROPOLITAN

REGIONAL MAIN CENTERS

LEV

EL O

F C

ON

TR

IBU

TIO

N T

O S

EC

TO

R O

BJE

CT

IVE

S

NATIONAL AIR PLANNING

Next steps:

simulation ofdevelopment

scenarios

Demandprojection

(pax / cargo)

Demand x Capacity

Investmentsdemanded

Short, mediumand long term

Validationand publish

PAN

Future Scenario:

Possibleairports net

Regional flights

Schedule flights

Airports x Routes

Metro-politan

RegionalPrimaries

Regional

Secondaries

Studiesand

projects

Work in progress

or alreadyplanned

– AIRPORT INFRASTRUCTURE –

NATIONAL AIR PLANNING

Both SAC and FNAC were established in 2011

(Law nº 12.462/2011)

PURPOSE OF RESOURCES

development and promotion of the civil aviation

sector and civil airport infrastructures

FNAC

Sector investments

Concessions resources

$$$$$$$$$$$$$$$$$

$$$$$$$$$

– FINANCING INVESTMENTS –BRAZILIAN CIVIL AVIATION FUND

2018CAPACIDADE

LADO AR

2028CAPACIDADE

LADO AR

2038CAPACIDADE

LADO AR

2018CAPACIDADE

LADO TERRA

2028CAPACIDADE

LADO TERRA

2038CAPACIDADE

LADO TERRA

CENÁRIO DE REFERÊNCIA COM INVESTIMENTOSCAPACITY

X

INVESTMENTS

Investimentos estão limitados a 4M PAX

PANSchedule

Airports classification: 31/05

Scenarios – First internal validation: 22/06

Scenarios – Established to National Air Planning: 27/07

National Air Planning (formal text) - final internalvalidation: 28/09

Sector Seminar (public hearing): 26/10

Final version to public presentation: 23/11

Technical files (available on SAC website): 28/12

– REGIONAL AVIATION –

IMPROVEMENTS PROGRAM

– REGIONAL AVIATION PROGRAM –MAIN TARGETS

2

3

AIRPORT INFRASTRUCTURE INVESTMENTS

• Better terminals and increase passenger processing capacity

• Increase air side capacity (both dimension and support) –runway, taxiway and apron

SAFETY & SECURITY BOTTLENECKS

Firefighting vehicles, Security inspection devices (x-ray and metal detectors) and Operational fence

INVESTMENTS TO IMPROVE

AIR NAVIGATION EQUIPMENT

1

4ACCESSIBILITY TO

REDUCED MOBILITY PEOPLE

Infraestrutura

Navegação Aérea

Equipamentos

2012 - 2018

R$ 104,54 Mi

R$ 40,00 Mi

R$ 123,15 Mi

– REGIONAL AIRPORTS INFRASTRUCTURE –IMPROVEMENTS

Infraestrutura

Navegação Aérea

Equipamentos

R$ 813,35 Mi

R$ 40,00 Mi

R$ 142,70 Mi

2019 - 2022

– REGIONAL AIRPORTS INFRASTRUCTURE –IMPROVEMENTS

Runway

Existing Dimensions: 1700 x 30 m Future Dimensions: 1680 x 30 m

� Reduction of 90 m THR 26 (allowing RESA) and ampliation of 68 m THR 08� PCN 56/F/A/X/T� Longitudinal slope 0,62%� RESA – 90 x 60 m� Grading runway strip (150 m) / Non Precision approach Runway strip (280 m)� New turnarounds in both sides of runway

RFF Station

200 m²

Apron

New with 6 aircraft parking stands (2x2C e 4x3C) PCN 44/R/B/W/T - 16.068 m²

Taxiway

260 m lenght x 25 m widthPCN 56

Other provisions

� New LED runway lighting� Signs� PAPI (THR 08 / 26)� Drainage system� New operational fence� Service roads

Improvements - Passo Fundo AirportTerminal

New terminal and parkingGround Control

existing terminal building

– REGIONAL AIRPORT INFRASTRUCTURE –BOTTLENECKS (SAFETY & SECURITY)

Fire fightingvehicles

89 firetrucks delivered

X-Ray / Metal Detectors

33 airports

OperationalFence

Installation and maintenance

– REGIONAL AIRPORT INFRASTRUCTURE –AIR NAVIGATION SYSTEMS

Charts RNAV EMS-AALS ILS

– REGIONAL AIRPORT INFRASTRUCTURE –ACCESSIBILITY

BuildingsAll building designs embracing

Universal Accessibility RequirementsAirside

Av-Ramp at all regional airports with schedule operations

– REGIONAL AVIATION PROGRAM –OPERATIONAL TRAINING

COURSE STUDENTS

Airport Firefighter and Fire Truck Driver 1042

Airport Managers (Basic) 321

Airport Managers (Intermediate) 129

Aircraf Rescue and Firefighting Management – ARFF 117

Airport Maintenance 79

Airport Operations 47

Ground Assistance 76

Airport Charges (Online) 29

Safety Planning Simulated Exercises – Airport Managers 11

Safety/Security/Operations Planning – Airport Managers 28

Pilot Schoolarships 53

TOTAL 1.932

REGIONAL AIRPORTS SERVED: 180

TOTAL INVESTMENT

US$ 6,4 MM

BETWEEN 2012-2017

BRAZILIAN MAIN

AIRPORTS

CONCESSIONS X RESULTS

BRAZILIAN MAIN

AIRPORTS

CONCESSIONS X RESULTS

BRAZILIAN MAIN

AIRPORTS

CONCESSIONS X RESULTS

2011

2012

2014

NATAL

(ASGA) Natal

(BSB) Brasília

(GRU) Guarulhos

(VCP) Viracopos

(GIG) Galeão

(CNF) Confins

BRASÍLIA

GUARULHOS

VIRACOPOS

GALEÃO

CONFINS

FLORIANÓPOLIS

FORTALEZA

PORTO ALEGRE

SALVADOR

2017

(FLN) Florianópolis

(FLZ) Fortaleza

(SSA) Salvador

(POA) Porto Alegre

– AIRPORT – BIG ONES –

CONCESSIONS

– AIRPORT INFRAESTRUCTURE –

TIMELINE

20162014 20152008

2014: New Terminal in Guarulhos, Brasília and São

Gonçalo do Amarante (Natal)

2015/16: New Terminals in Manaus, Campinas and

Goiânia. Increased Brazilian capacity in more 20 millionpassengers per year

+25.2 million paxGuarulhosBrasíliaNatal

+9.3 million PAXManaus

+5.1 million PAXVITÓRIA

2017/18: New round - Four main airports starting

improvements (Fortaleza, Salvador, Porto Alegre, Florianópolis). New Terminal and Apron in Vitória.

+10 million PAXGoiâniaCampinas

2018

Restrictions

– AIRPORT –

NEW CONCESSIONS

� 1st Quarter - Studies

� 2nd Quarter - Public Consultation

� 3rd Quarter - TCU and Notice

� 4th Quarter - Auction

2018 Schedule

JOÃO PESSOA

RECIFE

CUIABÁ

SINOP

ALTA FLORESTA

RONDONÓPOLIS

BARRA DO GARÇAS

CAMPINA GRANDE

JUAZEIRO DO NORTE

MACEIÓ

ARACAJÚ

MACAÉ

VITÓRIA

MATO GROSSO CLUSTER

NORTHEAST CLUSTER

VITÓRIA CLUSTER

¹ values updated by Brazilian inflation and the quotation of the dollar of the period.

U$ 11.8 bi¹

U$ 1.87 bi

U$ 2.19 bi

U$ 1.99 biU$ 1.91 bi

1997-1998 1999-2002 2003-2006 2007-2010 2011-2017

2011With private investment

U$ 7.9 bi¹

More investments

in half of the time

– THE CIVIL AVIATION POLICY –

GREAT RESULTS

1ºTri

2013

2ºTri

2013

3ºTri

2013

4ºTri

2013

1ºTri

2014

2ºTri

2014

3ºTri

2014

4ºTri

2014

1ºTri

2015

2ºTri

2015

3ºTri

2015

4ºTri

2015

1ºTri

2016

2ºTri

2016

3ºTri

2016

4ºTri

2016

1ºTri

2017

2ºTri

2017

3ºTri

2017

4ºTri

2017

1ºTri

2018

2ºTri

2018

69%70%

68% 68% 68% 69%

74%76%

81%83%

84% 85% 86% 86%89% 90% 91% 91% 91% 91%

3,86 3,90 3,82 3,81 3,81 3,75 3,90 3,94 4,07 4,09 4,15 4,16 4,19 4,16 4,24 4,28 4,34

MAJOR WORKS

92%

4,39 4,38 4,35

92%

4,39 4,42

Passenger satisfaction growth per quarter and average grade(Percent of 4 and 5 in 1 to 5 range grades)

– PASSENGER –

SATISFACTION SURVEY

- MORE INFORMATION ABOUT BRAZILIAN CIVIL AVIATION -

WWW.TRANSPORTES.GOV.BR/HORUS

MOVEMENTPerformance, ranking, evolution and comparison

HOTRANGraphs, indicators and infographic on authorized flights and routes

OPERATIONAL PERFORMANCEPassenger satisfaction survey through graphics and infographics

AIRPORT AND MAPData of each aerodrome, such as

cadastral information, indicators of operation, infrastructure and

location

SEPTEMBER 2018

BRAZILIAN CIVIL AVIATION OVERVIEW

CIVIL AVIATION SECRETARIAT