ATR Soars in Turboprop Market Amid Strategic Shifts

Based in Toulouse, ATR Aircraft has spent 40 years carving out its niche as the global leader in the turboprop market. Often overshadowed by its larger neighbor Airbus, ATR—a 50-50 joint venture between Airbus and Italy’s Leonardo—remains the undisputed specialist for small, efficient airliners.

In a press conference held on February 12, 2025, ATR’s CEO Natalie Tarnaud Laude reaffirmed the company’s focus on its core value proposition. “We have a fantastic platform, which is super-optimized for the job it has to do,” she said. This statement came as ATR reported its 2024 aircraft delivery figures and outlined the status of several key projects.

Over the course of its 40-year history, ATR has delivered a total of 1,721 aircraft, with 1,351 still in active service as of February 2025—a testament to the durability and reliability of its designs. In 2024, ATR recorded 56 new orders, with 51 orders for the ATR 72-600 and the remainder for the ATR 42-600. Notably, 80% of these orders were replacements for older ATR models, illustrating the strong loyalty of its customer base.

A key element driving ATR’s success is its close collaboration with leasing companies, which now account for about a quarter of its order book. These partnerships not only help refine ATR’s value proposition but also ensure capacity is available at short notice, a critical advantage during periods when production capacity is constrained by supply chain bottlenecks.

Looking ahead to 2025, Tarnaud Laude explained that ATR intends first to consolidate the production pace achieved in 2024. In the second half of the year, the company plans to ramp up production by building stocks of key parts and components—an effort aimed at easing bottlenecks on its final assembly line. However, ATR has also had to make tough calls in its strategic planning. For example, its STOL program, which aimed to develop a variant of the ATR 42-600 for extremely short runways, has been cancelled as runway extension projects in markets like Southeast Asia have diminished its business case.

Similarly, ATR has scaled down its EVO sustainable turboprop project. Initially designed to operate on 100% sustainable aviation fuel (SAF) and eventually with hybrid-electric propulsion, the EVO program will now evolve from the existing propulsion system rather than being built from scratch. Despite these adjustments, ATR continues to market its current technology as a low emissions, low noise alternative to jet aviation, boasting fuel savings of up to 45% compared to similar-sized jets. To highlight these savings, ATR even showcases two real petrol cans at its Customer Service Center for visitors to physically gauge the fuel saved per passenger on a typical 300nm flight.

Another exciting initiative is the HighLine project—a portfolio of premium cabin concepts targeted at upmarket operators, including those in executive aviation. ATR plans to deliver its first HighLine-fitted aircraft before the end of 2025. Malaysian operator Berjaya, for instance, has already ordered two ATR 72-600s featuring an all-business class configuration with 26 seats. During a visit to ATR’s Customer Experience Studio, AeroTime got an exclusive look at a full-size HighLine mock-up, including the innovative X-Space system. This system can transform a standard two-abreast seat row into a single seat with a personal table in under five minutes.

ATR’s Final Assembly Line, located in one of France’s most historic aviation facilities built in the 1930s, now operates three production lines—from structural assembly to avionics fitting and final testing. This blend of heritage and modern technology underpins ATR’s continued success in the global turboprop market.

Related News : https://airguide.info/category/air-travel-business/airline-finance/