ATR thrives on aircraft orders from Southeast Asia

WEDNESDAY, FEBRUARY 17, 2016
ATR thrives on aircraft orders from Southeast Asia

French turboprop maker ATR ended last year with a backlog of 260 orders, of which more than 40 per cent came from Southeast Asia.

“The need for ATR aircraft in Southeast Asia is expected to double over the next few years thanks to the infra-travel industry," Christophe Potocki, general manager for Asean and the Pacific, said yesterday.

The company also has options for more than 400 aircraft.

From 1985 until last year, the group delivered 1,200 aircraft to customers worldwide and made its presence in 100 countries.

Chief executive officer Patrick de Castelbajac said that amid the oil-price drop of 70 per cent, sluggish growth in Asia and strong US dollar against currencies in emerging markets, the group would seek more business in Japan, India, Iran and the United States. However, Southeast Asia will continue growing over the long term.

Singapore-based commercial aircraft lessor Aviation Plc has agreed to purchase five ATR72-600s.

Last year, ATR’s deliveries jumped 70 per cent to 88 aircraft from 51 in 2010.

Potocki said some countries in Southeast Asia such as Indonesia and the Philippines would need more specific models for short hauls of 550-920 kilometres because of their geography, as they are archipelagos.

More than 100 ATRs are operating in Southeast Asia.

Indonesia will become the biggest market for the group within five years with deliveries of more than 60 aircraft.

New customers from Indonesia are Garuda, Trans Nusa, Pelita Air, Jhonlin Air Transport (JAT) and Nusantara Air.

Three more aircraft will be delivered to Malaysia, two to the Philippines and two to Thailand. There are already 10 customers in newly opened Myanmar.

In Thailand, Bangkok Airways is a major customer. ATRs are operating 21 routes across Thailand. It has gained 70 per cent of the regional market in Thailand over the past 10 years.

New customers signing up in the past two to three years include Thailand’s Kan Air and the Philippines’ ITI.

According to ATR’s marketing department, Iran Air is placing a large order for 20 ATR 72-600s plus 20 options. Last year, the group delivered two aircraft with the Cargo Flex cabin to PNG Air in Papua New Guinea.

Cargo Flex is a configuration of cargo and passenger space that can be adapted to market conditions. If the cargo box is installed, it can reduce passenger seats from 72 to 44. It can be removed during the high season.

The new Cargo Flex will be introduced to Cebu Pacific in the Philippines this year and six more will arrive next year.

ATR production is based in Toulouse, France. ATR is a joint venture of Airbus and Finmeccanica, an aviation maker in Italy.