ATR Sees Market for Turboprops Stabilizing

After a long downturn in the regional turboprop market, ATR believes the decline is over.

The company expects the annual market will be about 60 aircraft, said Paolo Revelli-Beaumont, ATR's senior VP for commercial programs. Of that, ATR hopes to win about half against its main competitor Bombardier.

CEO Jean-Michel Leonard added that the company's recent restructuring should allow it to be more responsive to customer demands by shifting responsibilities that formerly resided with its two parent companies, Alenia Aerospazio and EADS.

There is even a small hope the market may grow, Revelli-Beaumont said. High oil prices could help get airlines to buy turboprops, rather than be willing to pay the penalty of flying turbofans on the short routes where turboprops are more efficient.

So far this year, ATR has sold 31 aircraft-17 new and 14 used-and has a 32-order backlog. The largest order was placed by Khalifa, the expanding Algerian airline that bought 10 ATR 72-500s. Vietnam Air bought three ATR72-500s and South Africa's Safair bought three that are being leased to India's Jet Airways. The company's is targeting growth especially in India, Indonesia, Philippines, Libya, and Malaysia.

The company believes it will be able to sell a couple of aircraft per year also for military or coast guard duties.

By Robert Wall