ATR sees India as its biggest market in 10 years as air travel demand soars

Turboprop aircraft manufacturer ATR expects India to become its largest market within the next decade amid the rising demand for regional air travel in the country, Jean-Pierre Clercin, the company’s head of commercial for Asia Pacific, told Business Standard.

At present, 67 ATR planes are in operation in India, with IndiGo operating 45, Alliance Air 20, and Fly91 2. These aircraft, which have seating capacities of 70 to 80 and a range of 1,500 km, are primarily used for regional travel, connecting smaller cities and towns.

ATR, a joint venture between Airbus and Leonardo, currently has around 1,400 aircraft operating globally. “India has the fastest-growing fleet of ATR planes in the world. The average age of the ATR planes in India is the lowest... It would be somewhat blind not to see the importance of India for us and aviation at large,” Clercin noted.

 

“In terms of the number of ATR aircraft in a country, India is in the top three. The number one country right now is Indonesia with about 100 ATR planes. Brazil and India hold the next two positions with about 70 ATR planes each... If you ask me, what is going to be the biggest market in the next 10 years, my money would be on India,” he further said.

When asked about the number of turboprop planes India would need in the next 10-20 years, Clercin estimated: “If I look at our official estimate, probably between 50 and 150 turboprop planes in the next 10 years. If I were to follow my heart, I would say it would be much more than that.”

ATR sees immense potential in India’s regional aviation market. “People want more convenience and a faster way to go around. The other transport infrastructure (roads, rail, etc) is growing but isn't catching up with the pace of the demand. Therefore, regional aviation has a huge role to play,” he said.

IndiGo had ordered 50 ATR planes in 2017, 45 of which have already been delivered. The company plans to deliver the remaining five by December this year. 

When asked if ATR was in discussion with IndiGo for another order, Clercin replied: “I think you should ask the airlines about what they want to do. What I can say is that there is a very big necessity of growing connectivity in the regions so all the different players (aircraft-makers) have a role to play. The government is very adamant that we need to boost connectivity in the secondary cities with VGF (viability gap funding provided under the UDAN regional connectivity scheme).”

Clercin admitted that he did not fully appreciate the depth of India when he first visited the country and travelled to major cities, such as Delhi, Mumbai, and Hyderabad. “It is the number of cities, including big cities, and the wealth being created, the way Indians are entrepreneurial by nature -- these factors make me think there is a space for more growth (than officially estimated),” he added.

Clercin expects ATR to supply 5-15 planes per year in India over the next decade. In 2023, ATR supplied 36 planes worldwide, 5-6 of which were delivered to Indian carriers.

“What we have seen over the past 12 months is the beginning of the story when it comes to aviation in India,” Clercin mentioned, pointing towards the world’s two largest aircraft orders placed by IndiGo and Air India. In June 2023, IndiGo placed an order for 500 A320neo family planes with European planemaker Airbus. In February 2023, Air India Group placed an order for 470 planes: 250 with Airbus and 220 with Boeing.

When asked if ATR was disappointed that neither IndiGo nor Air India placed any order with the company, while all the aircraft orders went to Airbus and Boeing, Clercin replied: “No. There are a lot of opportunities in India and I think it is a great market for the ATR as well. We see a lot of great stuff coming up.”

Both -- Air India and IndiGo -- had their reasons for ordering what they did, he said, adding that Air India was missing a widespread long-haul business and “that was probably the urgency for them”. IndiGo has to continue growing so it has placed priorities accordingly, he added.