Unless Brad, Jerry and Chip have a Bigger plan, I'm going to say they have one problem inhibiting their growth. Lack of guts. Personally unless something big is announced in their near future I will subscribe to the theory they will lose the regional battle to Republic. A company with 3/4 of a billion dollars that can't lock in growth is lacking something.
What is it lacking? Diversification? Lack of guts? I think not. A little under the radar but to keep you up to date on some socio-economic geography in the Southern Hemisphere.
1) Brazil is the world's fifth largest country, both by geographical area and by population. It has the world's 8th largest economy. The Brazilian economy has been predicted to become one of the five largest in the world in the next 10 years. Plenty of resources with a large labor pool.
2) The middle class population has grown and have become spenders, which had fueled Brazil's economy while the exports dropped during the world's financial crisis. Brazil is one of the 1st countries to show recovery.
3) The increasingly larger and younger middle class can now afford to fly more frequently to Brazil's 2,500 airports; the world's 2nd most, after the United States.
3) More regional flights needed to accomodate increased domestic demand.
4) Hosting the
2016 Summer Olmpics- 1st ever to be held in S America.
5) Hosting the
2014 World Cup- World's most watched sporting event.
some-eye-candy is that an iphone or blackberry?
6) Brazil's government wants to modernize its air transport system thus making it safer and more efficient with less delays.
7) The Brazilian Senate approved a Bill raising the limit for foreign ownership in Brazilian airlines from 20% to 49% in Nov-2009, further approvals from other areas of Government are still required, but no political resistance is expected against the proposal.
8) Currently SkyWest has 20% stake in TRIP Linhas Aéreas, largest regional airline in Brazil.
http://www.voetrip.com.br/
9) TRIP has a sound business model, its currently expanding and expects continous growth in the regional market.
10) SkyWest eventually ups the ante in ownership and goes for the 49%.
*Don't forget about David Neeleman's Brazilian creation, AZUL (sound familiar). Its 2009 performance allowed Azul to become the first airline in the world to board more than 2 million customers during its first year of operation and that was happening during a worldwide economic downturn. AZUL plans to have 78 E-jets with dual HUDS in 5 years. One delivery every month from now on. Go figure.
Another market of interest is in the Far East- China as being one of them, but until government reforms etc to some of those countries, then its a bit of a challenge. Same thing, large populations with a widening middle class willing to spend their money. Maybe the ASa project out there is to get inc's feet wet and explore and track some of the socio-economic trends for future opportunities in Asia. Carry-on
