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Aeronautics in El Salvador generated $ 321.3 million in one year

Aeronautics is seeking new international companies to land on Salvadoran lands so that they can take off the country’s economy after the stagnation caused by COVID-19.

José Emilio Márquez, specialist in investment promotion of the Export and Investment Promotion Agency of El Salvador (Proesa), said that currently El Salvador is prepared to serve all types of companies that want to venture into the sector in charge of flying the skies Salvadorans.

Despite the fact that the industry has been in turbulence due to the pandemic, between 2019 and 2020, it represented $ 321.3 million in exports of maintenance and repair services and, in addition, $ 26.7 million in cargo movement.

According to the specialist, that means at the national level an increase of 10.1% of the services exported in 2020, that is, a growth of $ 57.4 million compared to previous years.

The capital collection obtained in these years is due, according to the expert, to the companies operating in the country, which generates confidence in other nations of the world so that they have El Salvador on their radar for new investments.

“The experience and recognition that El Salvador has as a country that specializes in the field and with a successful experience in the development of the industry, has given it credibility with industries in the same sector but that are international,” he explained.

The expert in the industry in charge of transport in the sky reported that, at present, they are working on creating a cluster that serves to seek new investments in the country and stressed that the Salvadoran territory has specialized services for aircrafts, such as Maintenance , Repair and Operation (OMR, for its acronym in English).

In addition to commercial aircraft services, aeronautics on the ground, business opportunities in helicopter assembly, it is believed that there is an opportunity in the manufacture of aircraft or light aircraft fuselages and in the creation of parts such as for ailerons and engines.

Also, according to Márquez, other opportunities offered by El Salvador are the painting and maintenance of aircraft interiors, repair, change and reconstruction of seats, the creation of aeronautical harnesses, the assembly of aerostructures, workshops for component maintenance and warehousing distribution services for aeronautical parts.

On the other hand, the specialist indicated that the country makes investment possible, since it offers a regulatory framework in terms of incentives and makes use of legal instruments such as: the International Services Law, which offers incentives in the logistics part, call center services , and allows tax extensions, import duties, and income tax exception.

Márquez said that he is also betting on the transformation of the plastic sector and the mechanical metal sector, so that they can become, at first, producers of inputs for the industry and contribute to the generation of employment.

Only in El Salvador, aeronautics generates between 14,000 and 16,000 jobs between direct and indirect. Also, the salary in the sector is between $ 700 and $ 1,000.

Industry in turmoil due to pandemic

At the international level, aeronautics fell between 44% and 80% in the number of passengers they move, that according to the International Civil Aviation Organization (ICAO); However, prior to the pandemic, the sector had been growing 3.1% annually.

The International Air Transport Association (IATA, for its acronym in English) maintains that the item would be recovering to levels of previous years until 2024; however, specialists from the country believe that El Salvador could stabilize before that date.

Sector Profile

In North America, the sector represents 41% of the economy of those countries and in Latin America only 5%.

Last year the sector fell by 44% and 80% in the number of passengers they handle, according to the International Aviation Organization (ICAO).

Aeronautics represents 4.1% of the world Gross Domestic Product (GDP).

El Salvador’s experience in the field and in the development of the industry have given it credibility at the international level.

José Emilio Márquez, PROESA specialist.