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Sources say that India's Fly91 is close to ordering 20 ATR turboprops.

Three sources with knowledge of the matter have confirmed that Fly91, an Indian regional airline, is on its way to ordering at least 20 turboprops from ATR in order to expand its fleet.

The deal represents a significant wager on the Indian regional aviation market, where the government is trying to connect dozens of smaller towns through a "subsidised connectivity scheme", despite the fact that many routes have already been discontinued.

Two sources said that the order could include options to purchase several additional aircraft. Two sources said that an announcement could come as soon as this week.

ATR's spokesperson declined to comment. Fly91 did not respond immediately to a comment request.

Sources spoke under condition of anonymity, as the negotiations were?confidential. The sources said that the deal was not finalised, and that the number of planes and timing of the announcement may change.

ATR HAS DOMINATED THE TURBOPROP MARK

This deal is a major boost for ATR. It dominates the turboprop market but relies on a small number of markets to place its orders.

India and Indonesia are two of the most active markets for turboprops, which are economical for short domestic or island-hopping flights and prized for supporting regional development.

Fly91 operates ATR 72 600s from Goa’s Manohar International Airport to a dozen or so destinations.

The airline has said that it will induct 30 aircraft to connect over 50 cities within 5 years. Convergent Finance, a private equity firm, is backing the airline.

India, which is the fastest-growing aviation industry in the world, announced earlier this year that it would invest $3 billion to expand air travel in underserved areas of the country. The scheme is called Ude Desh Ka?Aam nagrik or "let the average citizen fly."

India will continue to subsidise routes that are otherwise unviable and develop 100 airports using existing airstrips.

(source: Reuters)