ATR is confident that its resurgence last year as a major force in the regional aircraft manufacturing business was not a flash in the pan, and is predicting that revenue will reach $1 billion next year as it triples output.
Speaking at its annual results briefing in Paris last week, the Alenia Aeronautica/EADS joint-venture’s chief executive Filippo Bagnato said he was convinced that the 90 orders ATR secured last year is “not a peak” in the revival of the turboprop airliner business – with its rival Bombardier seeing its orders for its Q Series turboprop double last year to 61 aircraft, 2005 was the propeller-driven airliner’s best year for a decade.
ATR delivered 15 ATR 42s and 72s last year – a slight increase on the 13 shipped in 2004, which combined with its support and asset management businesses gave it a 15% increase in revenue to $542 million, up 15% on 2004.
ATR benefited from the explosive growth of Indian regional aviation, with orders from Air Deccan and Kingfisher accounting for over half of the 90 orders it received last year. This success has given the manufacturer the confidence to boost production significantly over the next 24 months, which will drive up revenue.
Claiming “average return on sales of around 7-8%”, Bagnato said that revenue this year from the 25 deliveries ATR plans, combined with income from its support and used-aircraft businesses, “will increase by around 20% to $700 million. Our projection made around the production of 40 aircraft per annum in 2007 is that our revenues will be between $900 million and $1 billion – this is more or less double what we got in 2004.”
Bagnato said that ATR’s 2006 production is sold out, with customers now being offered 14 month delivery lead times.
MAX KINGSLEY-JONES / PARIS
Source: Flight International