Rising fuel prices and growing demand from smaller communities across India wanting greater connectivity to the larger domestic airline network could drive demand for turboprop regional transport aircraft (RTA).
Indian carriers could also join an emerging trend in aviation, where some airlines and operators are rebuilding their network and replacing bigger aircraft with smaller capacity aircraft. In the current high fuel cost climate, achieving a lower trip cost is vitally important, as airlines are becoming more risk-averse with a critical need to manage their cash flow.
The addition of smaller RTA’s can also allow airlines to better match capacity, where passenger demand is lower on certain routes. The smaller turboprop aircraft will be much more efficient on such routes than larger single-aisle jetliners, which have much higher fuel burn and trip costs. Airlines operating ATR aircraft in India created 40 new routes in 2021 alone. Fuel-efficient and economical turboprop aircraft, such as those from ATR, can burn up to 40% less fuel and emit up to 40% less CO2 than regional jets providing a major competitive advantage to airlines such as IndiGo and Alliance Air, which operate the type. The seat and trip costs on ATR 72-600s are also 10% and 20% lower than those of other in-production turboprops, respectively.
While many Indian carriers operate all jet-aircraft fleets, carriers like IndiGo and SpiceJet operate a mix of single-aisle jetliners and fuel-efficient turboprop RTAs. IndiGo presently operates a fleet of approximately 35 ATR 72-600s, configured in a 78 seat all-economy class configuration.
SpiceJet operates a fleet of 32 De Havilland Aircraft of Canada DHC-8-400 aircraft, out of which ten are configured with 90 seats and 22 in a 78 seat layout. State-owned Alliance Air, which operates on regional sectors, operates only RTAs, such as the ATR 42/72 and recently inducted HAL built Civil Do-228 aircraft on dry lease from Hindustan Aeronautics Limited (HAL).
Key Differentiator
IndiGo’s announcement in 2017 that it would operate ATR aircraft on regional routes marked a major shift from the cost-focused airline’s earlier emphasis on operating only a single aircraft type.
The LCC commenced ATR operation in December 2017 after delivering its first ATR 72-600 (VT-IYA) in November 2017. The ATRs are a vital part of IndiGo’s fleet, and their market economics and operational versatility at small airfields have made them the perfect tool for the growth of IndiGo’s regional network in India. Compared to the smaller ATRs, which seat 78 passengers, IndiGo’s A320 NEO aircraft are configured in a 180/186 seat all-economy class configuration; A321 jetliners are configured with 222/232 seats and its A320 CEO aircraft are configured with 180 all-economy seating. In addition, IndiGo’s ATR aircraft also feature modern cabin interiors specifically designed by the Italian firm Giugiaro for ATR. The changes include thinner seats, larger overhead bins and LED lighting.
IndiGo has not publicly announced whether it will add to its order for 50 ATR aircraft. However, last December, senior company officials said that, with the lease expiration of some of its ATR aircraft due in 2022, the airline was evaluating whether to extend these leases to increase its fleet or cancel them to allow the fleet to stay stable. IndiGo was recently ranked as the 6th largest airline by passenger volume in the OAG Frequency & Capacity Statistics for March 2022. According to the report, IndiGo had carried more than 2.02 million passengers in the month, the highest for any carrier in Asia. The report also ranked IndiGo among the Top 10 airlines globally by seat capacity for March. IndiGo was also named by OAG as one of the fastest-growing airlines globally, with a frequency increase of 41.3% in March.
Alliance Air Adds to ATR Fleet
In February, Alliance Air announced that it would lease two brand new 50 seat ATR 42-600 aircraft via lessor TrueNoord. The aircraft will be delivered to the regional airline by the middle of this year and will support Alliance Air’s mission of serving challenging airfields in the Himalayas. Alliance Air operates 18 ATR 72-600s, which have a high commonality with the smaller ATR 42, and the new aircraft will allow the airline to cater to airports with landing restrictions.
The brand new ATR 42s will be able to operate on the short runways of the Shimla and Kullu airports, both located at high altitudes and exposed to high temperatures.
Vineet Sood, Chief Executive Officer of Alliance Air, said, “Our relationship with ATR started 20 years ago, and ever since we have been building a network that truly serves Indian communities, delivering comfortable, reliable and affordable air services. Thanks to the unique features of the ATR 42-600, Alliance Air will proudly fulfill the mission assigned by the Indian government to make the most inaccessible regions accessible.”
Alliance Air has also signed up for ATR’s pay-by-the-hour maintenance programme, the ATR GMA, to optimise its operations and maintenance activities. It introduced its first ATR 72-600 aircraft in December 2014, and these aircraft were taken on lease from Singapore-based leasing firm Avation. The ATR 72-600s are configured with 70-seats and fitted with Pratt & Whitney 127M engines. Alliance Air is the former regional subsidiary of Air India and is now wholly owned by the Government of India through AI Asset Holding and is run as an independent Strategic Business Unit. It operates more than 125 flights/day to 50+ destinations within the country, focusing on connecting Tier II & III cities.
In Growth Mode
A joint venture between the European companies Airbus and Leonardo, ATR is the number one regional aircraft manufacturer globally, with its ATR 42 and 72 aircraft being the best-selling aircraft in the less than 90-seat market segment. ATR is now promoting its new purpose-built freighter aircraft, the ATR 72-600F, to meet the burgeoning demand for cargo aircraft. The first ATR 72-600F was delivered to launch customer FedEx in December 2020. The new freighter is fitted with a rear door optimised for freighter operations, a large cargo door, and a wide fuselage cross-section. It is also equipped with the latest-generation avionics.
According to ATR, the new ATR 72-600F offers greater aircraft availability and productivity with reduced maintenance costs. ATR is also witnessing demand from operators who want to temporarily convert their ATR passenger aircraft to freighters, with demand emerging in many markets, including India and the Philippines, for such temporary conversions. It also offers passenger aircraft converted into freighters and completed 17 passenger-to-freighter (P2F) conversions in 2021 – nearly twice that achieved in 2018. There are 140 full-freighter ATR aircraft now in operation around the globe.
The ATR 72 turboprop aircraft was officially launched in January 1986, with Finnish carrier Finnair taking delivery taking of the first aircraft in October 1989. ATR delivered 187 examples of the original ATR 72-200 before introducing the upgraded ATR 72-500 in 1997, which saw 365 aircraft being delivered. The newest ATR 72-600 entered service in 2009, and more than 450 aircraft have been delivered to customers.