Projects Strong Turboprop Sales In The Regional Market Going Forward

European regional turboprop manufacturer ATR released data Wednesday that shows orders booked for 80 new aircraft in 2010, plus options for 33. ATR also says it generated a turnover of $1.35 billion – almost three times the turnover achieved in 2005. These results illustrate the first signs of recovery of the aviation industry in 2010. They enable ATR to prepare itself to reach its next significant step of growth from 2012 onwards: yearly deliveries around 70 aircraft and turnover reaching $1.8 billion.

ATR booked orders for 80 new aircraft with 12 customers. Of these 12, five are new ATR clients which booked a total of 45 aircraft (56% of annual orders). Sales, including options, are valued at some $2.4 billion. Since the beginning of the program, ATR has booked net orders for 1,074 aircraft (423 ATR 42s and 651 ATR 72s). A third of these have been booked since 2005. “We registered significant orders from new customers in Latin America and the Caribbean region, as well as strong signs of confidence of lessors –Air Lease Corporation-, thus increasing our worldwide presence," said Filippo Bagnato, Chief Executive Officer of ATR. "We have now a strong baseline in order to prepare ATR for next important step.

ATR 72-600

ATR delivered 51 new aircraft in 2010. As of 31 December 2010, ATR has delivered 915 aircraft (412 ATR 42s and 503 ATR 72s). ATR also generated a turnover of $1.35 billion, which represents a substantial growth compared to turnover achieved in 2005. For the third consecutive year, despite the adverse financial and economical context, ATR has recorded a consolidated turnover of over $1.3 billion.

The company ended 2010 with a backlog of 159 aircraft, a major increase from year-end 2009 (136 aircraft), and representing three years of production at the current delivery rate. It completed transactions for 29 cash sales, the same as in 2009. It reports a portfolio of 165 operators in 92 countries, adding 46 new operators to its portfolio since 2005.

ATR feels that turboprop sales have clearly dominated the regional market over recent years, with more than 75% of sales, underlining clear demand for cost-efficient regional aircraft. Also, the expected increase in fuel costs and new environmental constraints in the EU Emissions Trade Scheme (ETS) will put further pressure on airlines’ costs over the coming years. “There is an estimated demand of almost 3,000 turboprop aircraft in the next 20 years, comprising 60% of growth and 40% of replacement needs," Bagnato said. "Our goal is to confirm our leading position in the turboprop market with over 50% of market share. In response to this increasing demand, we are ready to step up to a new level of growth from 2012 onwards, delivering 70 aircraft per year, and reaching a level of $1.8 billion-turnover over the next few years.

ATR 42-600 Photo By Pierre Barthe

“There is strong commercial potential for ATR in regions such as South East Asia, India and Latin America, where ATR has been highly successful in recent years, and also in other emerging economies," he continued. "Additionally, there is a strong replacement potential in mature markets. We are glad to offer a family of aircraft known for their lowest operating costs and lowest environmental impact”.

ATR expects to gain certification for both ATR -600 series models this year. Deliveries of the first ATR 72-600 will start by mid-2011, while deliveries of ATR 42-600s will start before the year end.

FMI: www.atraircraft.com