Indian Airlines is to order six ATR 42-500 turboprop airliners from the Franco-Italian ATR company. The deal also marks the start of a manufacturing cooperation between Hindustan Aeronautics (HAL) and the European aerospace concern.
"Indian Airlines has not conveyed its decision to us, but its board has approved the production contract, which means our financial offer has also been approved," Luciano Fava, ATR's vice-president for sales, said at the show. It is not clear whether government approval is still required.
The agreement signed by HAL and ATR is essentially a three-phase partnership leading potentially to joint production. The first stage is expected to involve just the customisation of the aircraft for the local market. HAL has been seeking a turboprop assembly deal for several years without success.
Further orders from carriers such as Indian Airways and possibly privately owned carriers like Jet Airways will be needed to push the figure above 60 aircraft in either the 50-seat ATR 42-500 or ATR72 configuration before a second production line would be considered. Production work for ATR would largely go to Hindustan Aeronautics' Kanpur Division, which already builds the Fairchild Dornier 228 under licence.
The deal with the state-owned carrier is expected to be for five firm aircraft and options on a further six.
ATR has a similar deal under way in China, where its subcontract work with local aerospace companies is related to sales of the ATR 42 and 72. The ultimate aim here is also to set up a production line, although slow sales in the country have delayed implementation of assembly work.
The Indian Government has ruled out a merger of Air India and Indian Airways, just days after the joint airline board approved a report by consultants recommending the move. On 7 December, the joint airline board approved the creation of a holding company, of which both airlines would be 100% subsidiaries.
Source: Flight International
