ATR and IndiGo signs term sheet for 50 ATR 72-600 aircraft

ATR has signed a term sheet with IndiGo, for the sale of 50 ATR 72-600 aircraft, with the flexibility to reduce the number of aircraft deliveries based on certain conditions. In a deal valued at over US$ 1.3bn at list price, the aircraft are expected to begin operations by the end of 2017. The airline is currently preparing for an ambitious development of its regional footprint. IndiGo’s plan coincides with the launch of the Indian Government’s Regional Connectivity Scheme called UDAN, aiming to boost economic development, employment and tourism by connecting small and remote cities. India’s rapidly expanding domestic market represented close to 100 million passengers in 2016, and has been steadily growing by more than 20% annually. It is expected to become the world’s third largest market by 2020. Under the Regional Connectivity Scheme, 100 new airports will be created within the next two to three years, and airlines will receive financial support and other incentives to make air travel affordable.