What it takes to be an operator in Chile
There is no country geographically similar to Chile. It stretches over 4,300km (2,670mi) from north to south, long enough to span the Atlantic from Canada to Spain. Yet it is only 350km (217mi) at its widest point from east to west.
With an average width of less than one-twentieth of the country’s length (109mi), Chile presents a set of unique challenges for aviators. There is desert in the northern regions, valleys and agricultural land in the central region and lakes, forests and glaciers in the south. With that comes a variety of requirements for aircraft, from mining and medical evacuation to cargo and connecting remote locations.
Being able to offer a service to all of those markets has been the focus of Chilean operator Aerocardal over the past 10–15 years. The firm was founded in 1990 and, for two decades, focused exclusively on the charter market, later expanding its range of activities to Aeromedical Evacuation Services, building the first FBO in Chile at Arturo Merino Benítez International Airport, and opening a spare parts centre.
Corporate Jet Investor sat down with the CEO of Aerocardal, Ricardo Real Ibar (pictured right), to discuss what it takes to be an operator in Chile, recent fleet additions, and the future for business aviation in Latin America.
Diversifying business
Real says the main reason he chose to diversify the business mix after taking over in 2010 was the size of the private charter market in Chile. “We are such a small market here. The niches all the companies here fill are medical evacuation and executive, nothing else. So we saw an opportunity with cargo, medevac, the FBO, full supplying — it is all very important. And now we’re often the only ones at the airport who have adopted certain business lines.”
An example of this is Aerocardal’s provision of FBO services to wide-body commercial aircraft. In the past few months, the company has serviced aircraft including C130s, C17s, and Boeing 737s and 757s. Also, services aren’t restricted to the country’s main airport in Santiago; Real says the company has teams strategically placed around Chile to provide on the ground FBO services wherever aircraft are located in the country.
Despite the diversified business mix, executive charter remains the biggest revenue maker for Aerocardal. Putting a rough number on it, Real says executive services make up 20% of the firm’s business.
Medevac
That said, medical evacuation flights are also a significant revenue stream (about 20% too) because Aerocardal is the only operator permitted to fly to Easter Island, over 2,000mi off the Chilean coast out in the Pacific Ocean. As we conducted the interview, from his office window, Real observed a Gulfstream G150 land at Arturo Merino Benítez International Airport from Easter Island with two patients on board.
“We do a lot of medevac flights. We also serve the Falkland Islands, or Islas Malvinas as they are known in Argentina, and the region as a whole. Last week, we flew a patient from the Falklands to São Paulo in Brazil. There, we connect with one of our more than 25 insurance company partners and organise further travel on to Europe for them,” says Real.
Cargo
Aerocardal began cargo operations around four years ago, and at that time would operate two or three flights every two months. Now the company is up to five to seven flights per month. While this might not sound like much, the cargo Aerocardal is carrying is specialist.
“We are the only company certified in Chile, aside from commercial carriers like LATAM, to carry specialist cargo such as chemical composites, radioactive materials, or an engine of a helicopter, for example,” he says. Specialist cargo also includes transporting salmon eggs around Latin America; the company has flown four missions this month exclusively for salmon farmers, according to Real.
“Cargo is growing in importance for us. Last month alone it made up 16% of our total revenues,” adds Real.
Supporting the state
Aerocardal also offers MRO services for the Chilean Air Force, which has four Gulfstream G4s. The company performs two-year inspections for the air force and recently completed work on three of the G4s; the other is based in the US.
“This is very important to us because it enables us to apply to more of the market. As I said, the Chilean market is very small, so we are always looking for ways to increase our capacity. Our maintenance business has never worked on an aircraft that has been involved in an accident, so this good reputation also helps to carry us forward.”
Supplementing the fleet
Aerocardal has operated Dornier aircraft as part of a set of contracts with mining companies for the past two decades. The firm currently has three Dornier 228s in its fleet, built between 1985 and 1987.
In need of an update, Real and his team announced the purchase of a Czech-made Aircraft Industries L 410 NG (pictured top) back in August. The newly acquired L 410 NG is projected to arrive in Chile in the fourth quarter of this year with its original passenger configuration, which can also be converted into an ambulance version.
The deal has also seen Aerocardal become the strategic sales partner within the Americas for OMNIPOL Group, the parent of Aircraft Industries. The company is also the exclusive sales representative of Gulfstream in Chile.
“This aircraft represents advanced technology and versatility, fitting well into our mission to provide top-notch services in passenger transport, as well as emergency medical evacuations,” says Real.
The aircraft is currently on a tour of the Americas and will be on display at NBAA-BACE in Las Vegas this week.
