Regional airline FLY91 places order for 40 ATR planes amid push for regional connectivity

Goa-based regional airline FLY91 on Thursday inked an agreement with European turboprop aircraft manufacturer ATR for 40 ATR 72-600 planes. The order, valued at close to $1 billion at list price, is the largest-ever order for ATR planes from a regional airline anywhere in the world, and its third-largest order overall.

India’s largest airline IndiGo is currently the biggest ATR operator in India, with an operational fleet of 44 turboprops to cater to its regional network. State-owned Alliance Air also operates ATR planes. Speaking at the FLY91-ATR deal signing event, Civil Aviation Minister K Rammohan Naidu called FLY91 a “success story”, expressing hope that regional aviation in India would pick up notably in the foreseeable future.

FLY91 has been a bit of an exception in the Indian aviation market that has seen subdued interest in the regional segment with most large carriers focussed on narrow-body jet operations. A number of regional airlines have fallen by the wayside in India over the years, even as the government has been pushing for enhancing regional air connectivity through initiatives like UDAN.

“I see this landmark that we are having today as a very confident message that we are sending to people across stakeholders, across civil aviation (sector) that India’s regional civil aviation is only in the beginning (stage) and we are just starting to grow with great potential,” Naidu said, adding that the next phase of the UDAN scheme will see India adding 100 new airports, a vast majority of which will be in tier 2 and 3 cities.

Naidu also said that India, which is the world’s third-largest and fastest-growing aviation market, has scope for all aircraft sizes — from small seaplanes to jumbo jets. The minister added that India wants to become a centre for aircraft manufacturing, and asked ATR to consider making planes in India.

While the aircraft component manufacturing ecosystem in India has grown considerably over the past few years, the country’s long-standing ambition of making passenger aircraft in the country is yet to be realised. “When we talk about aviation (in India), it is not just having those 180-seaters or the big planes or the A380s.

If we really want to see successful regional connectivity in the country, we have to ensure right from those 180-seaters and above, you also need the 90-seaters, 80-seaters, 40-seaters, 19-seaters, nine-seaters, seaplanes, and helicopters.

So there are multiple ways of connecting India and we have to ensure there is a proper ecosystem for all these kinds of aircraft to flourish in the country,” the minister said. “FLY91 was built on a singular conviction that India needs a dedicated regional airline focused on connecting emerging cities directly and efficiently.

We have grown steadily and consistently since our launch, and this 40-aircraft order becomes the foundation for our next chapter. Having operated more than 15,000 flights in just two and a half years, we have built the operating experience and foundation to now scale significantly.

Together with ATR, we are building the regional aviation network that Bharat deserves, one that unlocks opportunity, strengthens local economies, and truly keeps Bharat Unbound,” said FLY91 Founder and CEO Manoj Chacko. ATR CEO Nathalie Tarnaud Laude said, “This expansion aligns closely with the Indian Government’s ambition to strengthen regional connectivity through UDAN, bringing affordable and reliable air transport to underserved communities.

The ATR 72-600 combines unmatched economics, efficiency and reliability, enabling airlines to offer affordable fares while connecting millions of passengers to opportunities across India.” The company has been “very bullish” on the Indian market and sees potential for as many as 200-300 turboprop aircraft in India over the next 10 years or so, given the immense unexploited regional aviation market in the country.

ATR is a Franco-Italian regional aircraft manufacturer, and is a joint venture by Airbus and Leonardo. ATR aircraft are considered the most popular regional aircraft globally in the under-90-seat market segment. ATR claims that its turboprop aircraft are significantly more fuel-efficient and economically viable for short and regional routes than jet aircraft.

Sukalp Sharma is a Deputy Associate Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 16 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy.

He considers himself an above-average photographer, which goes well with his love for travel. ... Read More