IndiGo To Go Regional With ATR Order

India’s IndiGo has signed a provisional order with ATR for up to 50 ATR 72-600 aircraft, in a deal worth over USD$1.3 billion at list prices.

The agreement allows IndiGo to vary the number of aircraft under certain conditions. ATR said the first aircraft should enter service by the end of the year.

IndiGo, currently an all-Airbus operator, will use the ATRs to build a regional network in India as the government pushes to boost local economies by connecting small and remote cities.

“We are embarking on a journey to build a nation-wide regional network and connect cities that have not benefitted from the growth in Indian aviation,” IndiGo president Aditya Ghosh said. “The ATR’s low operating costs will help us build a large regional air travel network with reasonable fares.”

The provisional order coincides with the launch of the Indian government’s Regional Connectivity Scheme, UDAN, that aims to boost economic development, employment and tourism in the regions.

India’s domestic aviation market has been growing by more than 20 percent annually, reaching almost 100 million passengers in 2016. Under UDAN 100 new airports will be built over the next two-to-three years and airlines will receive financing and other incentives to support the plan.

Low cost carrier IndiGo is the largest airline in India by passenger numbers and fleet size. It operates a fleet of over 130 Airbus A320-family aircraft, including 20 A320neos out of an order for over 400.