“Our aircraft are highly efficient and future-proof, and we are committed to providing airlines and passengers with the most modern, reliable, low-emission and cost-effective aircraft on the market.”

Jayant Baranwal (Baranwal): Since taking over as the CEO in September 2022, how has been your journey so far?

Nathalie Tarnaud Laude (Laude): My journey with ATR has been both incredibly challenging and rewarding. Coming into this role shortly after the COVID crisis, my main focus has been on ramping up production to serve our customers while preparing for the future, focusing on sustainability and innovation. This is precisely what the regional aviation market is asking us: delivering highly fuel-efficient aircraft, which are also versatile, affordable and future-proof.

As you know, an aircraft is among the most complex industrial products, with stringent rules and regulations designed to ensure the highest levels of safety. Relaunching production and supporting our supply chain to get back to pre-Covid levels has been a true challenge, and last year’s results show a very positive evolution, with 36 aircraft delivered, which is 44 per cent more than in 2022. Our target is to keep ramping up with an ambition to reach 80 aircraft produced per year by the end of the decade to meet the growing needs of regional connectivity worldwide.

We also had a record year in 2023 from different perspectives. Our Support and Services activities reached revenues of over $400 million, which shows that our operators rely on us to support their operations. We welcomed 11 new customers for new and used aircraft, extending further our customer base which already counts almost 200 operators. We recorded over 100 transactions on the used market, which demonstrates the value of the ATR as an asset. Last, but not least, our operators opened 160 new routes with our aircraft in 2023, compared to 150 in 2022, which confirms the relevance of the ATR as a “route opener”, as well as the strong demand for regional air connectivity in many areas of the world.

These positive results underline the relevance of our products and services, our capacity to constantly improve our products, and our ability to adapt to changing market dynamics.

It has been a real privilege to lead such a team of experienced leaders and talented individuals, and I’m very excited about the future, given the strong value proposition we bring to the market.

Baranwal: How do you see the future of Regional Turboprops, especially ATR aircraft?

Laude: We have recently performed a very detailed analysis of the regional aviation market dynamics over the next 15 years. This analysis shows that regional connectivity will grow and develop over years on all continents and that there is a large number of older regional aircraft to replace within the same timeframe. To fulfil this demand, ATR has a tremendous advantage with a low-emission alternative that responsibly connects people and places. Designed by pioneers and driven by continuous innovation, our aircraft are highly efficient and future-proof, and we are committed to providing airlines and passengers with the most modern, reliable, low-emission and cost-effective aircraft on the market.

While aviation faces the imperative of aligning with the Paris Agreement’s sustainability goals, demand for air travel remains robust with a forecasted growth in air traffic of above 4 per cent per year in the decade to come. Then it becomes crucial to find a balance between making aviation more environmentally sustainable and the aspirations of individuals to continue to fly.

The turboprop technology is providing low-emission alternatives to thirstier regional jets. Market dynamics are shifting towards sustainability and environmental concerns, favouring turboprops for their fuel efficiency and lower carbon emissions. We are also preparing for stricter regulations and government policies on emissions and noise that will play a major role in shaping the future of turboprops.

If you look at all the new projects around low-carbon regional mobility and short-haul connectivity, they all revolve around propellers: they are the future of aviation.

“ATRs, with their unrivalled versatility and economics, provide essential services and a lifeline to communities around the world, and that connectivity in turn empowers communities, opens up economic development opportunities and boosts tourism.”

The future of turboprops is also very much related to the future of regional mobility in general. ATRs, with their unrivalled versatility and economics, provide essential services and a lifeline to communities around the world, and that connectivity in turn empowers communities, opens up economic development opportunities and boosts tourism. Studies show that a 10 per cent increase in regional flights generates a 6 per cent increase in local GDP, a 5 per cent increase in tourism and an 8 per cent increase in foreign direct investment. These are the tangible benefits of regional aviation, and our aircraft are the ideal modules to provide these vital links. The fact that more than 40 per cent of ATR aircraft in service are serving essential air services is a great testimony to this.

All trends confirm a strong need for over 2,000 turboprop deliveries over the next 15 years.

Baranwal: What are the key advantages for Operators around the world, for the Regional Turboprops – ATR family of aircraft?

Laude: The ATR aircraft family is renowned for its exceptional fuel efficiency, producing lower CO₂, NOx, and noise emissions compared to regional jets and other turboprops, thereby complying with stringent ICAO standards. Equipped with the most advanced avionics suite in their class, ATRs incorporate cutting-edge technologies, navigation aids, and passenger comfort features on par with singleaisle jets. Moreover, ATR aircraft are designed to perform reliably in extreme temperatures and at high altitudes, enhancing their capability to access challenging airfields around the world. This robustness also makes them suitable for the growing e-commerce sector and associated needs for regional freighter aircraft.

The ‘family’ approach behind the ATR 42 and ATR 72 also gives our operators a lot of flexibility. The two aircraft models share the same fuselage cross-section, systems, engines, propellers, and cockpit, enabling common type rating and cross-crew qualification. This interchangeability significantly reduces costs for operators by streamlining flight crew training and maintenance. Additionally, approximately 90 per cent of the spare parts are common, which makes it very easy to operate both types of aircraft, and therefore to be able to constantly adapt the number of seats offered on certain routes to demand.

ATR also offers competitive services that enhance operator performance. The ATR Global Maintenance Agreement, for instance, is a great tool to support both established customers and startup airlines. With a proven track record of supporting startups, ATR helps de-risk operations, predict costs, and enhance reliability. Established customers also benefit from ATR’s expertise as a manufacturer, with insightful recommendations on operations and a constant strive towards optimisation and anticipation.

Baranwal: What all is ATR doing to stay ahead of the competition, both in terms of aircraft technology and market presence?

Laude: ATR is maintaining its competitive advantage through continuous innovation and constant discussions with our strong, loyal customer base. To remain at the forefront of the regional market, it is essential to relentlessly work on the operational and economic performance of our aircraft. This is why we collaborate with industrial partners and suppliers on product improvements.

Since partnering with Pratt & Whitney Canada in the mid-eighties to introduce the PW120 engine, ATR has continued prioritising innovation, resulting a few years ago in the launch of the PW127XT series. This new engine offers 40 per cent more time on wing, a 20 per cent reduction in direct maintenance costs, and at least 3 per cent fuel burn savings compared to the PW127M, leading to a 45 per cent reduction in CO₂ emissions versus similar-sized regional jets. The PW127XT exemplifies ATR’s commitment to developing modern, efficient technologies that meet customer needs, enhancing aircraft availability, and setting new standards for fuel consumption, emissions, and operating economics in regional aviation.

If you look into our long-term vision, the ATR EVO concept addresses sustainability and connectivity challenges worldwide. Recognising that different regions have unique needs, ATR consulted customers to understand their requirements for the nextgeneration aircraft. The clear feedback was a demand for a lowemission solution that remains versatile and affordable. This led ATR to explore new advancements that maintain the high standards of the current platform. These continuous advancements keep ATR at the forefront of regional aviation, delivering cuttingedge technology, superior passenger comfort, and exceptional environmental performance.

In terms of market presence, what truly makes a difference is the relevance and the value we bring to the market. ATR, with over 40 years of experience, has been able to develop a unique balance between speed and fuel consumption, innovation, versatility, great economics and low emissions. This is why our aircraft are today flying with 200 customers in over 100 countries.

If we look at India, for instance, the first ATR began flying in the country in 1999. Nowadays, there are around 800 passenger aircraft in operation, and almost 70 of them are ATRs. The ATR 72 is the third most popular aircraft type in India, after the A320 and A321. What’s interesting to note as well is that India has the third youngest fleet in the world (6.7 years on average), and the ATR fleet is even younger than that – 5 years old on average. This shows clearly that Indian airlines are looking to invest in state-of-the-art aircraft to carry their passengers. Many of the Indian passengers are first-time travellers, who choose air transport over slower or less comfortable ground transportation options, which also makes them very price sensitive, particularly about domestic trips.

In that kind of environment, with a pressing need to join secondary population centres, and a burgeoning middle-class asking for affordable connectivity, ATR aircraft provide an excellent business case. The ATR 72-600 can accommodate up to 78 passengers, it is the lowest cost per trip aircraft in production, and airlines start making profits with just over half of the seats filled in the plane.

The accessibility to challenging airfields is also key in the success of the ATR in India. Currently, our aircraft are the only modern aircraft capable of flying to short runway airports, such as Kullu, Shimla or Agatti, in the Lakshadweep archipelago. For all of these reasons, ATR aircraft have played over the last 20 years, and will continue playing, an important role in broadening access to air travel across India. They uniquely combine outstanding economics, passenger comfort, reliability, airport compatibility and sustainability. We are proud and honoured to provide Indian people with ATR aircraft which support the Indian government’s UDAN initiative in its goal of making flights affordable and ubiquitous nationwide to boost economic prosperity.

Baranwal: ATR is really big on “Sustainability”. Can you share some of your major initiatives taken in this direction?

Laude: First and foremost, ATRs offers unmatched fuel efficiency, consuming 45 per cent less fuel and emitting 45 per cent less CO₂ than comparable regional jets. Making our aircraft and activities ever more responsible is a pivotal aspect of ATR’s strategy.

In June 2022, we conducted the first flight in history with 100 per cent SAF in both engines of a commercial aircraft, reducing CO₂ emissions by up to 80 per cent. This flight demonstrates that the technology is ready, and we are waiting for the ASTM certification to be able to offer that full 100 per cent SAF capability to our customers.

While we are working on the 100 per cent SAF certification of our aircraft, we are also making plans for the next generation of ATR aircraft, and that is our EVO concept. We are in the pre-feasibility phase and are aiming at a renewal of the propulsion system with a hybrid electric capability, new propellers, improved cabin and systems - all eco-designed. We want to offer an even more responsible aircraft, 100 per cent SAF compliant, with higher performance and a double-digit reduction in operating costs. We are targeting an entry into service around 2030+.

We have identified three main initiatives to achieve this: sustainable aviation fuels (SAF), mild hybridisation with the ATR EVO, and considering the entire aircraft life cycle. While disruptive technologies are still in development, we are making significant progress today.

And our commitment extends beyond SAF and EVO, as we previously mentioned. We are focused on adopting new materials, optimising route efficiency, and improving aircraft systems. Aircraft decarbonisation is a comprehensive process that encompasses the entire product life cycle, from design to dismantling. Our focus is on reducing waste, promoting reuse, and enhancing recyclability of parts. Currently, 85.5 per cent of ATR parts are recyclable or reusable, and we are actively exploring new designs and materials to further enhance this figure.

These efforts demonstrate our dedication to building a more responsible industry today, even as we await the maturation of more disruptive technologies.

Baranwal: Where do you position your company in the market of air travel / transport, which is likely to be populated by e-VTOL, variety of advanced air mobility solutions, unmanned air travel, upcoming hybrid platforms, etc?

Laude: Most e-VTOL aircraft and air mobility solutions are envisioned to transport a limited number of passengers, while a typical ATR route, however, carries around 1,00,000 passengers a year. This e-VTOL market segment mostly focuses on providing on-demand, point-to-point transportation within urban and suburban areas, aiming to alleviate traffic congestion.

ATR has a strong foothold in the regional aircraft market, primarily serving short-haul routes, and we will continue to focus on regional connectivity, targeting routes that will probably not be economically viable for less performing aircraft than ATR.

We are committed to ensuring that our aircraft remain the most advanced and lowest-emission platforms available on the market. Our objective is to ensure that our customers can continue to benefit from the versatility and profitability of our products while maintaining affordable air travel for passengers.

Our hybrid electric ATR EVO concept is the natural next step for us and the ideal combination of what the market demands: further reducing emissions compared to traditional aircraft, without requiring huge investments in costly and complex infrastructure. To remain relevant, we will also continue leveraging synergies and sharing expertise with other industry players and partners to remain at the forefront of innovation and offer integrated solutions to our customers. ATR is a joint venture that is supported by two aerospace heavyweights and forward-looking players: Airbus and Leonardo.

Overall, our ability to adapt and innovate will be crucial to position ourselves as leaders in the air travel and transport market of the future. By leveraging our regional expertise, exploring hybridisation, embracing new disruptive technologies, fostering partnerships, and prioritising customer experience, I am confident we will navigate the changing landscape and remain a key player in the industry.