Friday, April 08, 2016

ATR, Bombardier and Embraer bullish on India growth

Mumbai: Plane makers ATR, Bombardier and Embraer are bullish on growth in India with the rise in air travel in tier II and III towns and the government thrust on regional connectivity.

These plane makers primarily cater to the regional aviation  market with their 48-110 seater aircraft. Currently ATR has the largest presence amongst the three in India with 35 aircraft in service with four scheduled airlines. Bombardier and Embraer have 15 and 3 aircraft in service  with a single operator each.

Demand is expected from both existing customers and new airlines as the civil aviation ministry proposes to link 350 unused airstrips in country and state governments  encourage airlines to start operations to tier II and III towns. Last year domestic air traffic grew over 20 per cent and the government expects new wave of growth to come from smaller towns.

The government  initiatives present opportunities for manufacturers of small planes such as ATR, Bombardier and Embraer. While turboprops such as an ATR-72 or a Bombardier Q-400 aircraft are better suited  to serve short distance low traffic routes, mid size jets like Embraer E-190 (flown by Air Costa) are designed for long distance low traffic routes. The operating costs of a  jet aircraft is higher than turboprop plane and hence it is more economical to operate them on longer distance flights.
08/04/16 Aneesh Phadnis/Business Standard
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