News
ATR in no hurry to develop larger variant despite shrinking order backlog
January 27th 2017
Franco-Italian turboprop manufacturer ATR will likely develop a larger variant at some point in the future, but it is in no hurry to do so, ATR CEO, Christian Scherer, told Reuters this week. Read More »
"My personal view is that a larger ATR is a question of when rather than if," Scherer said, who added such a decision would be a matter for the company’s joint shareholders, Airbus and Leonardo.
Leonardo is understood to be lobbying for a larger ATR seating up to 100 passengers, a significant departure from ATR’s existing two models seating 42 to 78. Airbus believed ATR’s current market proposition is adequate, likely because of fear a larger turboprop could cannibalize its single aisle sales.
"Do I as ATR have the ambition to continue to introduce new features, new airplanes and products to grow? Absolutely. I am happy to see that we have one shareholder who is of the same opinion. The other one is exercising a perfectly rational business judgment and saying ATR is doing very well, keep on going," former Airbus executive Scherer said.
ATR this week released its 2016 sales figures. Deliveries have more than tripled in the last decade - at 80 aircraft, 2016 was its third-highest year in terms of deliveries – but the number of years of production backlog has dropped from more than five years to fewer than three.
A major win for ATR appears near. Scherer said his team had “concluded the negotiations [with Iran Air]” with the signing of a contract “imminent”. ATR and Iran Air last year signed a preliminary deal for 20 ATR72-600s, plus 20 options.
ATR delivered the first of nine on-order ATR42-600s to Japan Air Commuter last Friday. The airline is a subsidiary of flag carrier Japan Airlines (JAL).
The airline’s president, Hiroki Kato, said “the unrivalled airport accessibility of the ATRs, along with their high standards of safety and comfort, make the ATR -600s the perfect solution for our mission: connecting small communities and providing high-quality air service across the country.”
