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Not since the days of the British Empire has there been anything like the commonwealth of nations - Brazil, Russia, India and China – whose initials form the economic grouping known by the acronym BRIC, writes Colin Ellson.
Where as Queen Victoria’s fiefdom had a population of 458 million at its zenith, and covered one-fifth of the world’s land surface, the BRIC countries are inhabited by some three billion people, half the global total, living on one-quarter of the planet. Even the European Union, comprising around 500 million people, doesn’t come close, accounting for just 7.3 per cent of the world population. So much for statistics. The underlying message is that the Big Four stand out from other promising emerging markets through their determination to seek out opportunities for cooperation in trade, investment and infrastructure, with the potential to rank among the world’s most influential economies in the 21st century. As such, they look like fulfilling a forecast made by Goldman Sachs that by 2050 China and India would become the first and thirdlargest global economies, with Brazil and Russia capturing the fifth and sixth spots (The US falls to second and Japan to fourth). For UK plc, the BRIC countries form previously unparalleled opportunities for trade and investment across a broad spectrum of sectors, each with growing middle classes eager for their share of the good life. Brazil, for example, is one of the world’s biggest and most politically stable democracies, with the largest number of consumers of luxury products in South America and the most extensive healthcare market too. Back in the Northern hemisphere, UK trade with Russia has been growing by an average 21 per cent a year over the past decade, the government’s current modernisation and development agenda encouraging 140 million consumers seeking quality goods and services. Meanwhile, the country as a whole needs international expertise and products. While it outpaces the Russian bear, claiming the world’s second-fastest growing economy, India is a challenging market. But new business opportunities not only exist in traditional economic heartlands such as Mumbai and Delhi but are also stretching to emerging cities around the country. India is second to China in terms of economic growth. Topping the global league tables, the vast country has unimaginable potential, although businesses need to keep abreast of the speed and depth of change. That said, whether selling, trading, investing or franchising, the country offers abundant opportunities for UK companies. Happily, most of the main trade centres in the four countries can be reached on direct flights from the UK, the more remote accessible with one stop en route. Reflecting the stability of the BRIC nations they serve, international airlines have mostly stayed clear of the issues facing the commercial aviation industry, the emphasis on expansion and consolidation rather than cutbacks. TAM Airlines and LAN, for example, are due to merge shortly, forming the largest airline in Latin America, while Vietnam Airlines’ new flights from Gatwick to Hanoi and Ho Chi Minh offer another option for flying into China. Meanwhile, British Airways and Qantas have enhanced their agreement to strengthen their Asian networks, one outcome being that BA now flies from Heathrow to Hong Kong, increasing frequency early this year from 14 to 17 services a week. The bad news is that India’s Kingfisher Airlines, facing mounting losses, has culled all its international routes, including its servicesfrom Heathrow to both Mumbai and Delhi. The good news is that Virgin Atlantic will resume flights from Heathrow to Mumbai, a service which ceased in 2009, flying daily from October this year. Meanwhile, however companies fly to the BRIC countries, they will access the greatest market since the Victorians stamped the world map with their proprietary red.
BRAZIL
Brasilia
Purpose-built to house the Brazilian government, the country’s capital is about far more than politics. The headquarters of many national companies, it also has a strong industrial base, including food processing and pharmaceuticals, while banking and finance are important strands of the economy. There are no direct services from the UK or continental Europe to the Brazilian capital. The alternatives are to catch a domestic flight from Rio de Janeiro or São Paulo, or fly via Atlanta with Delta or via Miami on American Airlines.
Rio de Janeiro
Overlooked by the giant statue of Christ the Redeemer, a tourist hot spot for its scenic splendour and annual carnival, Rio is also a major player in scientific research and home to the headquarters of numerous companies involved in the oil industry. From Heathrow, British Airways serves Rio six times a week, and TAM Airlines three times a week. Iberia flies six times a week from Madrid, TAP daily out of Lisbon, while Air France has 14 flights a week departing Paris Charles de Gaulle. KLM operates thrice-weekly from Amsterdam Schiphol, and Lufthansa has six weekly flights from Frankfurt. American, Delta and United serve Rio from their US hubs.
Sao Paulo
The largest city in the Southern Hemisphere has seen its economy diversifying in recent years. Once heavily industrialised, today its focus is on finance and the service industries. Both BA and TAM depart Heathrow for São Paulo daily. Iberia flies 14 times a week from Madrid and twice weekly from Barcelona, and TAP has a daily service out of Lisbon. Air France offers 14 flights a week from Paris CDG, KLM operates daily out of Schiphol, and Lufthansa flies once a day from Frankfurt and Munich. Services from their various North American hubs are with Air Canada, American Airlines, Delta and United.
Salvador
On the north east Atlantic coast of Brazil, tropical Salvador has one of the country’s major ports, making it a key centre for international trade. The industrial sector includes a Ford Motor Company plant. There are no direct services from the UK, but Air Europa flies from Madrid to Salvador as does TAP from Lisbon. American Airlines offers a further one-stop option via Miami.
Manaus
Located in northern Brazil, Manaus has diversified its economy. Once reliant on the rubber industry, its current industries include petroleum refining, chemicals, mobile phones and the export of timber and Brazil nuts. There are no direct flights from the UK or Europe to Manaus. Instead, connect with a domestic service in a major Brazilian gateway or fly to Miami and onward with American.
RUSSIA
Moscow
A global political powerhouse, dominated by the controversially re-elected President Putin, the Russian capital is also an economic wheeler-dealer, home to the country’s largest banks, the Gazprom energy giant and many self-made billionaires. From Heathrow, Transaero and BA both fly to the Russian capital thrice daily, with Aeroflot and bmi flying four times a day. Air France offers five services a day out of Paris CDG and KLM has a double-daily frequency from Schiphol. Lufthansa operates a total of 107 flights a week from six German cities.
St Petersburg
The most westernised of Russian cities, housing many international corporations and banks, the beautiful city on the Gulf of Finland is also an industrial centre. Key to the economy are the oil and gas industries, shipbuilding, aerospace, computer software and machinery. From Heathrow, BA and Rossiya Airlines serve St Petersburg daily. Air France provides two flights a day from Paris CDG, and KLM flies daily out of Schiphol. Lufthansa’s schedule comprises 44 operations a week, with flights departing from Frankfurt, Munich, Dusseldorf and Hamburg.
Novosibirsk
Many of the head offices of numerous Russian companies call the biggest city in Siberia home. Its large industrial base covers the electricity, gas and water supply sectors, and mechanical engineering is another pillar of the economy. The only service from the UK to Novosibirsk is Transaero’s thrice-daily schedule from Heathrow via Moscow.
Yekaterinburg
They try to forget the assassination in Yekaterinburg of Tsar Nicholas and his family during the Russian revolution of 1918. Instead, the emphasis is on taking part in Russia’s economic revival. As a major industrial centre, the city promotes the heavy machinery, metal processing and metallurgy sectors, along with scientific research. Transaero offers the only flights from the UK to Yekaterinburg, flying thrice-daily from Heathrow via Moscow. Lufthansa operates six direct flights a week out of Frankfurt.
Nizhny Novogorod
Some 400 kilometres east of Moscow on the Volga River, Nizhny has become one of the Russian Federation’s most important economic hubs. The city has 25 R&D institutions, the driving force behind a burgeoning IT industry. There are no direct flights from the UK to Nizhny. The alternatives are to connect with one of Lufthansa’s five services a week from Frankfurt or join a domestic carrier in Moscow
INDIA
Mumbai
While it is probably best known in the west for Bollywood, the centre of the Hindi movie industry, Mumbai has many other strings to its sitar. With a natural harbour on India’s west coast, it accounts for 70 per cent of the country’s maritime trade, and is the financial and commercial capital, with industries including engineering, healthcare and IT. BA and Jet Airways fly from Heathrow to Mumbai twice daily, with Air India operating a daily service, and Virgin relaunching its daily service from Heathrow on October 28th. Lufthansa has a daily frequency from both Frankfurt and Munich, while Air France flies six times weekly from Paris CDG. Emirates flies from Dubai five times a day, Qatar Airways daily from Doha, Etihad twice-daily from Abu Dhabi, and Oman Air daily from Muscat.
Delhi
On the banks of the Yumana River, Delhi includes New Delhi, the seat of the Indian government. This has attracted a range of supporting service industries, among them IT and telecommunication companies and hotels, along with many media interests. From Heathrow, BA flies to Delhi twice-daily, with Air India, Virgin Atlantic and Jet Airways providing daily services. Finnair and Air France both fly six times a week from their hubs, with KLM daily from Schiphol, and Lufthansa daily from both Frankfurt and Munich. Flights from the Gulf are with Gulf Air, Emirates, Qatar Airways, Etihad and Oman Air.
Bangalore
Fast-growing Bangalore is a regional economic centre, its prosperity based on the software, aerospace and telecoms sectors. India’s largest exporter of cutting-edge technology, it also has a strong heavy engineering tradition. BA flies daily from Heathrow to Bangalore. Air France has six services a week from Paris CDG, and Lufthansa flies daily from Frankfurt. Emirates has three flights a day from Dubai, Qatar Airways a daily service out of Doha, and Oman Air flies six times a week from Muscat.
Kolkata
On the banks of the Hooghly River in north east India, Kolkata is a major centre for banking and finance, supplemented by the steel, mining, pharmaceuticals and electronics industries. Air India departs Heathrow daily for Kolkata, flying via Delhi. Lufthansa flies three times a week from Frankfurt, Emirates 12 times a week from Dubai, and Qatar Airways daily from Doha.
Hyderabad
Noted for its high elevation and cool temperatures, Hyderabad was a favourite retreat in the days of the Raj and remains popular with tourists. It is a world leader in IT, and the development of HITEC City has encouraged a host of foreign companies to establish operations here. BA serves Hyderabad five times a week from Heathrow. Otherwise, flights are from the Gulf, with Emirates departing Dubai three times daily, and Qatar Airways, Etihad and Oman Air all operating daily from their hubs.
CHINA
Beijing
As the seat of government and the centre of one of the world’s fastest-growing economies, China’s capital is the focus of attention for Western business interests. It is a major financial centre, big into electronics and pharmaceuticals, and a magnet for venture capitalists too. British Airways and Air China both fly daily from London Heathrow to the Chinese capital, with the latter due to launch four flights a week from Gatwick at the beginning of May. Finnair offers a daily service from Helsinki, the frequency mirrored by KLM and China South from Schiphol, and Lufthansa from Frankfurt and Munich, while Air France has a double-daily operation from Paris CDG. Services from the Gulf include Emirates’ twicedaily flights out of Dubai and Qatar Airways’ daily departure from Doha.
Shanghai
While Beijing concentrates on politics, China’s largest city is all about business, the showcase of the country’s prosperity. It has the world’s busiest container port, an important auto manufacturing industry, and is a key player in finance and technology. From Heathrow, Virgin flies to Shanghai daily, British Airways six times a week, and China Eastern four times a week. Air France operates 14 services weekly from Paris CDG, KLM 12 a week from Schiphol, and Finnair and Lufthansa depart daily from Helsinki and Munich plus Frankfurt respectively. Emirates offers a double-daily frequency out of Dubai and Qatar Airways serves Shanghai daily from Doha. Or experience Vietnam Airlines’ new daily services from Gatwick to Ho Chi Minh and Hanoi, flying on with the airline to China.
Guangzhou
The capital of Guangdong province is on the Pearl River Delta, one of mainland China’s leading commercial and manufacturing regions. Its prime industries include automobile assembly, biotechnology, logistics and computer software. China Southern is set to launch three flights a week from London Heathrow to Guangzhou in June. Meanwhile, it already operates daily services from both Amsterdam Schiphol and Paris Charles de Gaulle. Air France also flies five times a week from CDG and Lufthansa three times a week from Frankfurt. Flights from the Gulf include daily frequencies with Emirates and Qatar Airways from their hubs. Or fly via Vietnam with Vietnam Airlines.
Hong Hong
Also on the Pearl River Delta, Hong Kong is one of the world’s major financial centres, renowned for its vertical skyline and deepwater port. With money the raison d’etre, it used to be said HK had more Rolls-Royces to the square mile than anywhere else on earth. From Heathrow, Cathay Pacific serves Hong Kong four times a day, BA 17 times weekly, and Virgin daily. Air France flies 12 times a week from Paris CDG, Lufthansa daily out of Frankfurt and Munich, with KLM providing the same frequency from Schiphol. Flights from the Gulf include Emirates’ 19 departures a week out of Dubai, and Qatar Airways’ 11 weekly services from Doha.
Chongqing
In south west China, Chongqing is the world’s third-largest centre for motor vehicle production and the largest in terms of motorcycles. A remote inland location makes the city ideal for military bases, but hampers the export sector, so the manufacturing focus is on local consumers. There are no direct flights from the UK or Europe to Chongqing, although Finnair is due to launch a route from Helsinki in May. A convenient alternative is to fly to Hong Kong and onward with one of Cathay Pacific or Dragonair’s services, or to travel via the Gulf and connect with one of Qatar Airways’ three services a week.
Carbon Cost
The table below shows the distance covered by a return flight between London and the destination, along with the approximate carbon emissions produced and the cost of offsetting it with The Carbon Neutral Company. See www.carbonneutral.com for more information.
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