Nothing off the table: ATR open to India manufacturing facility

Turboprop aircraft maker ATR is open to establishing an aircraft manufacturing facility in India if it makes “business and industrial sense”, its head for the Asia Pacific region, Jean-Pierre Clercin, told Business Standard on Sunday.

 

Currently, ATR has manufacturing facilities in France and Italy.

 

“Nothing is off the table, if it makes sense, from an industrial and business perspective...We are a joint venture between Airbus and Leonardo. Our shareholders are already heavily invested in the country (India) in terms of supply chain. So, we have a lot to learn from that as well,” Jean-Pierre Clercin said, when asked whether the company would consider setting up a plane manufacturing facility in India if it receives a large order from an Indian carrier.

 

In March, Airbus announced plans to significantly increase its sourcing of components and services from India, targeting $2 billion annually by 2030. This would mark a substantial rise from the current $1.4 billion, underscoring the growing importance of the Indian aviation market. 

 

At present, there are 70 ATR aircraft operating in India. IndiGo operates 47, Alliance Air runs 20, and Fly91 uses three. With seating capacities ranging from 70 to 80 and a range of 1,500 kilometres, ATR aircraft are used for regional travel, connecting smaller cities and towns across the country.

 

IndiGo had ordered 50 ATR aircraft in 2017, all of which have been delivered. When asked whether ATR is in discussions with IndiGo for a fresh order, Clercin said: “We are involved in discussions with many carriers. It is best to direct this question to IndiGo.”

 

“I think they are very busy with their international plans. I think that has been a strong focus for them... In the same line, there is a government expectation to see some other champions emerge,” he added.

 

There are currently about 1,400 ATR aircraft operating worldwide.

 

Clercin observed that India has the potential to expand its ATR fleet six to seven times over the next decade. “India has been at the forefront of a huge transformation from the perspective of innovation. You look at an airline like IndiGo — what they have done is formidable,” he noted.

 

He added that5 India could become ATR’s largest market within the next five years. Currently, Indonesia holds that position, with a fleet of around 100 ATR aircraft.