ATR upbeat on turboprop market potential in MENA

Speaking at the Aviation Outlook MENA conference in Dubai Bertrand Pabon, ATR’s manager of market strategy, said that the utilisation of the turboprops was much lower in the region than elsewhere in the world.

“In the MENA region, there is “clearly room to grow” for turboprop aircraft,” he said. “Usually we see an average of 38 per cent turboprop versus narrow-bodies in the regional markets but in the Middle East the average is as low as 22 per cent. There is clearly room to grow,” Pabon said.

Aviation experts say that with crude oil prices expected to average $110 a barrel this year, airlines are looking at turboprops because they use less fuel than jets even if they are slower, said Jerome Gabory, director for market strategy at the Toulouse-based. The market shares of turboprops and jets are really dependent on fuel prices. The higher the fuel prices the more market share for turboprops.

On a 500-nautical-mile flight, an ATR burns about 20 kilogrammes of fuel per seat, compared to close to 30kg per seat for a jet-engined aircraft of the same size.

“A turboprop can save up to 50 per cent in fuel cost for the shortest flight. … The shorter the flight the bigger the difference (in fuel burning) because it does not climb as high as a jet,” he explained

Pabon, said the latest model of the ATR regional turboprop — the ATR 72-600 — would be handed over to launch customer Royal Air Maroc at this year’s Paris Air Show.

“Thirty new airports will be opened in India because of this airplane,” Pabon said, “It can change a market.”

A study by ATR showed that there are currently 257 routes operating in the region over distances below 300 nautical miles — of these 30 per cent are international, the rest are domestic, Pabon said.

“But importantly for us, 50 of these short routes are served with narrow-body aircraft and are not yet served by a daily flight. If you look at passenger demands then a regional market needs twice daily flights as a minimum.”

Pabon said that airlines in the region need to look at exploring the smaller markets. “There is the offer of additional opportunities,” he said. “No geographical constraints but hidden opportunities in areas such as adventurous luxury leisure, hostile area support, remote estate service.”

ATR’s research shows 50 per cent of passengers worldwide take trips shorter than 500 nautical miles, and 30 per cent take trips shorter than 300 miles. That works out to 600 million passengers per year on short-haul routes.

ATR, which has the largest market share in turboprop aircraft in terms of order backlog, at 70 per cent of the world’s total, is upbeat about the future of turboprops for short regional flights.

ATR, a 50:50 joint venture between Alenia Aeronautica and France-based EADS, believes the world will need almost 3,000 turboprops, estimated to be worth $70 billion.

Demand for cost-efficient regional aircraft, the expected increase in fuel costs and new environmental constraints in the EU Emissions Trade Scheme will put further pressure on airline costs over the coming years and favour turboprops.

The European producer recorded orders for 80 new aircraft last year, plus options for 33, doubling the previous year’s order intake, as the aviation industry fully recovered from its slump.

ATR last year achieved turnover of $1.35 billion, almost three times the level achieved in 2005. It envisages strong commercial potential in regions such as Southeast Asia, India and Latin America. ATR ended 2010 with a backlog of 159 aircraft. 


issacjohn@khaleejtimes.com