Turboprop maker ATR predicts demand for 10 aircraft per year in 2 decades

Mumbai: Turboprop maker ATR has forecast demand for up to 10 aircraft a year in India in the coming two decades but said the company's ability to meet this robust requirement would hinge on raising production amid supply chain constraints.

"We have a market forecast that would show there is a conservative demand of about 10 aircraft per year delivering to India consistently in the next 20 years," said Alexis Vidal, senior vice president, commercial at ATR. He said the Indian market could absorb more planes if the manufacturer is able to increase production.

The forecast comes as the JV of Airbus and Italy's Leonardo works through a global order backlog of about 170 aircraft.


ATR can produce 40 aircraft annually, half of pre-pandemic levels, as supply chain disruptions continue to affect production. The company is selling 50-60 aircraft annually and aims to enhance deliveries to about 60 planes a year by 2030.

Vidal said supply constraints, rather than demand, remain the main factor limiting production.

Asia-Pacific accounts for about 40% of ATR's deliveries and global order backlog, making it the manufacturer's largest market. India currently has around 70 ATR aircraft in service, and Vidal said the fleet has the potential to double or triple in the coming years as regional air connectivity expands.

ATR said its forecast is based on the size of India's domestic travel market. According to Vidal, India records more than 4 billion intercity trips every year, but only about 3% are made by air, compared with 8-9% in more mature aviation markets.

He said the government's plan to add around 100 airports by 2030 would improve access to air travel by bringing more people within closer reach of an airport, driving demand for regional aviation.

Vidal said a larger ATR fleet would require additional capabilities in pilot training, maintenance and component manufacturing in India. He said ATR wants to work with Indian partners to develop those capabilities as the market expands but didn't announce any investment plan or timeline.