IndiGo, India’s largest airline, is likely to place an order for 30 to 50 ATR 72-600 turboprop aircraft during the Paris Air Show later this month, people familiar with the matter told Business Standard on Friday. The deal, if finalised with the Franco-Italian aircraft manufacturer ATR, could be valued between $450 million and $750 million, based on an estimated transaction price of around $15 million per aircraft, they said.
Discussions between IndiGo and ATR for a new batch of aircraft have been ongoing since last year, the sources said. “The deal size could be increased from 50 planes to a larger number,” a source added.
Asked for comment, an ATR spokesperson told Business Standard: “It’s best to ask IndiGo about its plans.”
“What we can say is that ATR aircraft provide an outstanding value proposition for India’s regional mobility needs, as demonstrated by our 25-year presence and dominant market share in the country. With unparalleled fuel efficiency, versatility, and accessibility, our aircraft perfectly match India’s need for sustainable, cost-effective regional connectivity,” the spokesperson added.
IndiGo did not respond to Business Standard’s request for comment till the time of going to the press.
The Indian carrier, which currently operates a fleet of about 46 ATR 72-600s, had earlier placed an order for 50 such aircraft in 2017 as part of a strategy to expand its regional footprint under the government’s UDAN scheme to improve air connectivity to underserved towns. Four aircraft have since been sold or leased to others.
Deliveries under that contract were completed by early 2025.
The ATR 72-600 is a twin-engine turboprop aircraft typically seating around 70 passengers, although IndiGo configures its planes in a high-density 78-seat layout. The aircraft is primarily deployed on short regional routes, with a range of about 1,370 km.
“IndiGo has utilised the ATRs on all sorts of routes, from monopoly under regional connectivity scheme UDAN to some intra-metro high-frequency ones in South India,” said Ameya Joshi, aviation analyst and founder of the blog Network Thoughts. “The airline has also experimented with routes, some working well and some not continuing,” he said.
The turboprop fleet enabled IndiGo to expand its network to smaller destinations such as Kolhapur, Kishangarh and Kadapa, which are not feasible for the airline’s Airbus fleet, according to Joshi.
But he also flagged infrastructure limitations at major airports as a major hurdle for ATR operations. “One of the bigger challenges has been getting slots at Delhi or Mumbai for the ATR,” he said. “The development of secondary airports — like Navi Mumbai and Jewar — could ease this constraint and support rapid network expansion. How much does the government incentivise going forward also needs to be seen.”
Since 2023, IndiGo has placed several aircraft orders. Last Sunday, it announced an order for 30 additional Airbus A350 widebody planes, adding to its April 2024 order for 30 A350s, bringing its total widebody order to 60 aircraft. Deliveries will begin in 2027 and continue into the next decade.
These widebody planes, which have larger fuel tanks than narrow-body A320s, are key to IndiGo’s long-haul expansion, targeting routes like India-US, India-Europe, and India-Australia to compete with Air India and Gulf carriers.
The recent widebody orders followed IndiGo’s record-breaking June 2023 order for 500 Airbus A320neo family aircraft to boost its narrow-body fleet for domestic and short-haul international operations. Airbus Chief Commercial Officer Benoit de Saint-Exupéry said on Sunday that IndiGo’s total order book now stood at 1,400 aircraft, including these recent widebody orders and earlier large-scale A320 family purchases over the past decade.
ATR is a joint venture between Airbus and the Italian aerospace group Leonardo, with each owning a 50 per cent stake in the manufacturer.
IndiGo’s current fleet stands at about 430 aircraft, comprising 46 ATR 72-600s, three leased widebody aircraft, and a mix of narrow-body Airbus planes.
The Paris Air Show, held biennially at Le Bourget near Paris, is one of the world’s largest aerospace exhibitions, where major aircraft manufacturers and airlines announce new products, technologies, and commercial deals. This year’s edition will take place from June 16 to 22.