Fly91 places firm order for 40 ATR 72-600 turboprops to expand regional routes

‘This 40-aircraft order becomes the foundation for our next chapter’, Manoj Chacko, founder and chief executive officer at Fly91, said

Regional airline Fly91 on September 3 placed a firm order for 40 ATR 72-600 turboprop aircraft, marking one of the largest single orders placed with Franco-Italian aircraft maker ATR as the carrier seeks to expand connectivity to smaller Indian cities.The deal, valued at about $1 billion at list prices, gives a significant lift to ATR, which dominates the global turboprop market but remains dependent on a limited number of countries for aircraft sales. The order also underlines India's growing importance as a market for regional aircraft, supported by government-backed efforts to improve air connectivity to smaller cities.The Economic Times had reported about the deal a day earlier.Fly91 chief executive Manoj Chacko said the airline had negotiated an undisclosed discount on the aircraft, as is customary for large orders. The first aircraft is expected to be delivered in the second half of 2027, with all 40 planes scheduled to arrive by 2032 or early 2033.Fly91 currently operates six ATR 72-600s. It plans to add another six to eight aircraft through leases from the open market, taking its fleet to 12-14 aircraft by late next year.Chacko said India's air connectivity remained significantly underdeveloped, with narrowbody aircraft serving only about 70 of the more than 160 functional airports in the country. Fly91 expects to operate around 60 aircraft once the aircraft covered by the new order have been delivered.The planned expansion comes as the airline seeks to establish a sustainable business in a market where several regional carriers have struggled and a number of routes introduced under India's regional connectivity scheme since 2017 have subsequently been discontinued.Turboprop aircraft offer lower operating costs on short-haul routes and can use shorter runways. This allows airlines to connect airports and markets that may not be viable for narrowbody aircraft such as the Airbus A320 or Boeing 737 MAX.Fly91 is yet to finalise financing for the order. The airline is in discussions with lessors and financiers, while using its own resources to meet upfront payments. Chacko described these payments as significant but did not disclose the amount.The airline has raised $26.3 million and is looking to raise another $26.3 million. Existing investors have already subscribed to a quarter of the proposed additional funding.Fly91 is debt free and expects to achieve cash break-even by the end of the current financial year, followed by profit-and-loss break-even a year later.Of its roughly 280 weekly flights, 98 receive viability gap funding covering half the seats under the regional connectivity scheme. The support amounts to roughly $1.16 million a month.