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India’s largest airline IndiGo has signed a non-binding term sheet for the purchase of 50 ATR-72 aircraft for a foray into regional aviation.
“We expect to have seven ATR-72s by March 2018 and induct up to 20 aircraft by December 2018,” the airline said in a statement.
Rival low-cost airline SpiceJet has a fleet of 18 Q400 Bombardier aircraft. Air India and Jet Airways also have smaller planes in their fleets.
“When we looked at turboprop alternatives, ATRs had less fuel burn. Ultimately, the aim is to have the right cost structure,” said Rohit Philip, chief financial officer, IndiGo.
The government’s regional connectivity scheme will be propped up with a major player like IndiGo announcing its plan.
“Tier II and Tier III cities are becoming growth engines and aviation connectivity will be beneficial. We expect increased business activity will improve demand for air travel,” IndiGo President Aditya Ghosh said during an earnings call.
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