ATR says the carrier has signed a ‘term sheet’ with IndiGo for 50 ATR 72-600 aircraft, with the flexibility to reduce the number of aircraft based on certain conditions. Deliveries are expected to begin by the end of 2017.
IndiGo’s plan coincides with the launch of the Indian Government’s Regional Connectivity Scheme ‘UDAN’, aiming to boost economic development, employment and tourism by connecting small and remote cities. The airline will play a key role in these regional developments.
India’s domestic market currently represents around 100 million passengers annually and is steadily growing by more than 20 percent a year. India is expected to become the world’s third largest market by 2020. Under the Regional Connectivity Scheme, one hundred new airports will be created within the next two to three years. Airlines receive financial support and other incentives to make air travel affordable.