PARIS–ATR aims to progressively ramp up deliveries to 80 per year by the second half of the decade, following a weaker-than-expected performance in 2022.
The regional turboprop manufacturer had been hoping to deliver more than 30 aircraft in 2022, but it ultimately fell short with just 25 deliveries.
“This was certainly not the level we wanted to be at,” ATR CEO Nathalie Tarnaud Laude said June 20 at the Paris Air Show, marking her first air show appearance since taking on her role in September 2022.
Reflecting on her time with ATR so far, Tarnaud Laude said it had not been “a walk in the park.” She said the supply chain was still suffering and this would continue throughout 2023 and into the beginning of 2024 “at least.”
Tarnaud Laude is working with suppliers “on a weekly basis” and is still looking to deliver more than 40 aircraft this year. ATR is also growing its employee base by 12% this year, adding 150 new staff.
“We are well on track,” she said, announcing firm orders for 22 new aircraft, plus two options, in the year-to-date. This compares with 26 orders secured during the whole of 2022.
The 2023 orders comprise two all-business-class ATR 72-600s for Malaysian carrier Berjaya Air, six ATR 72-600s for Mandarin Airlines, three ATR 72-600s for Brazilian carrier Azul (plus two options), eight ATR 72-600s for three undisclosed customers and three ATR 42-600s for two undisclosed customers.
“We are already seeing the results of the market picking up and we are very confident we will be able to announce more by the end of this year,” she said.
In terms of demand trends, the OEM is seeing a shift from replacement aircraft to growth and Asia is coming back. ATR SVP commercial Fabrice Vautier said none of the 22 orders booked in 2023 will be replacements. ATR is forecasting demand for 2,450 turboprops and 550 freighters over the next 20 years.
Asian demand is also coming back, and this market holds fresh potential for ATR after the company secured Chinese type certificate validation for the ATR 42-600. Vautier said this clearance means ATR can reactivate discussions with potential Chinese customers and look at developing its support network.
“The certification was a key milestone. It was quite difficult to get active campaigns when you don’t know if you can certify, or deliver, the plane,” Vautier said.
He added that China could ultimately be a potential market for the ATR 42-600 STOL (short takeoff and landing) variant, more for its higher power in hot and high conditions than for its short runway capability. However, there are no immediate plans to certify the STOL variant in China.
Supply chain problems mean that ATR is being cautious with its production ramp-up. ATR is currently producing four aircraft per month, and this is set to grow to five in 2024.
“We are not planning to be at 80 aircraft next year,” Tarnaud Laude said. “It is a slow ramp-up because our plan is to be at 80 by 2026. We have room, and hopefully the supply chain will be in a much better place at that point in time.”
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