NEW DELHI: IndiGo has announced plans to buy 50 ATR turboprop planes with an aim to tap the regional aviation market. The deal could run into $1.3 billion at list price.
IndiGo, which has firmed up an order for 250 A320neo aircraft in August 2015 that could fetch up to $25.7 billion for aircraft manufacturer Airbus, has a fleet of 133 Airbus planes, including 19 A320neo. It expects to have 170 A320 planes by March 2018.
IndiGo plans to launch its turboprop operation at the end of this year and expects to induct up to 20 ATR 72-600 aircraft by December next year, the airline said, “assuming” that the intended final purchase agreements are reached.
If everything goes by the plan, by March 2018, IndiGo would have seven such aircraft.
“IndiGo has signed a term sheet with Avions de Transport Regional (ATR) for the purchase of 50 ATR 72-600 aircraft with the flexibility to reduce the number of aircraft deliveries based on certain conditions,” the airline said in a statement, while announcing the results of the fourth quarter of fiscal 2016-17.
This term sheet is subject to reaching a mutually satisfactory final purchase agreement with ATR and the engine manufacturer, it said.
IndiGo President and Whole-time Director Aditya Ghosh said, “In support of Prime Minister Narendra Modi’s UDAN vision, we are embarking on a journey to build a nationwide regional network and connect cities that have not benefited from the growth in Indian aviation.”
Meanwhile, IndiGo’s parent Inter Globe Aviation reported a nearly 25% decline in profit at Rs 440.31 crore in the fourth quarter ended March 2017, as higher expenses took a toll on its bottom line.