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IndiGo to add ATRs from December
October 20th 2017
India’s largest airline, budget carrier IndiGo Airlines, this week said it would launch its first ATR flights on December 21. Read More »
In line with the Narendra Modi government’s ‘Regional Connectivity Scheme’, UDAN (Ude Desh ka Aam Anagrik), IndiGo inked a deal for 50 ATR 72-600s in May.
However, the deal comes with a caveat. In their official communications, ATR said IndiGo had “the flexibility to reduce the number of aircraft based on certain conditions”. The turboprop manufacturer told Orient Aviation “there are indeed some conditions open” without specifying what they were.
If the carrier takes all 50 ATRs, the deal would have a list value of more than US$1.3 billion, one of the biggest contracts ATR has received.
Until now, IndiGo has been an all-Airbus operator, although there will hardly be any rivalry between Airbus and ATR, given Airbus Group’s 50% share in the turboprop maker. The Delhi-headquartered carrier has 141 A320s, including 24 A320neo, and is the largest operator of the re-engined single aisle aircraft. It has firm orders for 405 additional A320neo and 25 A321neo.
UDAN aims to boost economic development, employment and tourism by connecting small and remote cities. Modi said 100 new airports would be built within the next two to three years and airlines would receive financial support and other incentives to make regional air travel more affordable.
Modi launched UDAN in late April, when Air India subsidiary, Alliance Air, commenced a five-weekly Shimla-New Delhi ATR flight on April 28, Shimla Airport’s first scheduled service in five years. “Why should air services only be for the elite in this country? Under these [UDAN] flights, you can fly for as low as Rupees 6 to 7 per kilometre (US$0.1) and reach Delhi from Shimla in an hour," Modi said at the launch.
India’s rapidly expanding domestic market represented close to 100 million passengers in 2016 and has been growing by more than 20% annually. It is forecast to become the world’s third largest market by 2020.
Commenting on the impending delivery of the first ATR to IndiGo, airline president, Aditya Ghosh, said it was “indeed a proud moment for all of us who have been working relentlessly to bring our dream of regional flying to reality”.
“We at IndiGo are bringing people and places closer. We have set off on a journey into the heartland and make these connections deeper. These flights will open up a whole new market, improving the choices of air travel to millions of our fellow citizens,” he said.
The airline will begin ATR operations on December 21 on existing routes between Hyderabad, Chennai, Bengaluru, Mangalore, Madurai and Nagpur. It plans to launch services with the turboprops between Bengaluru/Hyderabad-Tirupati, as well as Bengaluru/Hyderabad-Rajahmundry.
