European regional turboprop manufacturer ATR today announced it booked orders for 80 new aircraft in 2010, plus options for 33. ATR also generated a turnover of 1.35 US $ billion, almost three times the turnover achieved in 2005.

These results illustrate the first signs of recovery of the aviation industry in 2010. They enable ATR to prepare itself to reach its next significant step of growth from 2012 onwards: yearly deliveries around 70 aircraft and turnover reaching 1,8 US$ billion.

2010 STATUS :

• Orders :

ATR booked orders for 80 new aircraft with 12 customers (see Figure 1). Of these 12, five are new ATR clients which booked a total of 45 aircraft (56% of annual orders). Sales, including options, are valued at some 2,4 US $ billion.

Since the beginning of the programme, ATR has booked net orders for 1,074 aircraft (423 ATR 42s and 651 ATR 72s). A third of these have been booked since 2005.

Filippo Bagnato, Chief Executive Officer of ATR, declared: “I am delighted that ATR has regained speed in 2010 by doubling previous year order intake. We registered significant orders from new customers in Latin America and the Caribbean region, as well as strong signs of confidence of lessors ?Air Lease Corporation-, thus increasing our worldwide presence. We have now a strong baseline in order to prepare ATR for next important step.”

• Deliveries :

ATR delivered 51 new aircraft in 2010 (see Figure 2). As of 31 December 2010, ATR has delivered 915 aircraft (412 ATR 42s and 503 ATR 72s).

• Turnover :

In 2010 ATR generated a turnover of 1.35 US $ billion, which represents a substantial growth compared to turnover achieved in 2005 (around 0.5 US$ billion). For the third consecutive year, despite the adverse financial and economical context, ATR has recorded a consolidated turnover of over 1.3 US $ billion. 

• Backlog :

ATR ended 2010 with a backlog of 159 aircraft, thus achieving a major increase from year-end 2009 (136 aircraft), and representing three years of production at the current delivery rate. As of 31 December 2010, ATR’s backlog is: four ATR 42-500s, five ATR 42-600s, 43 ATR 72-500 and 107 ATR 72-600s. Asia-Pacific and Europe each represent 32% of the current backlog, followed by Latin America (18%), Africa-Middle East (12%) and North America (6%).

• Asset management :

In 2010 ATR completed transactions for 29 cash sales, the same as in 2009. This reinforces interest in ATR aircraft among airlines and lessors because of their high residual values and low operating costs.

• Customer services :

In 2010 ATR continued to expand its contract services with the signing of seven new Global Maintenance Agreements (GMA) covering 82 additional aircraft. As of today, 306 ATR aircraft (30% of the total fleet in operation or on order) are covered by service contracts with ATR.

In 2010, ATR Customer Services also launched “ATRactive” a new online tool to facilitate the access and exchange of information within ATR and with airlines and suppliers, and to further develop e-business. With this new platform, ATR’s online sales for spares represent today 30% of spares sales.

• Portfolio :

As of today, ATR has a portfolio of 165 operators in 92 countries. ATR has added 46 new operators to its portfolio since 2005.

• Workforce :

ATR has a total workforce of 855 employees.

MARKET OVERVIEW AND FORECAST :

Turboprop sales have clearly dominated the regional market over recent years, with more than 75% of sales, underlining clear demand for cost-efficient regional aircraft. Also, the expected increase in fuel costs and new environmental constraints in the EU Emissions Trade Scheme (ETS) will put further pressure on airlines? costs over the coming years.

Filippo Bagnato declared: “There is an estimated demand of almost 3,000 turboprop aircraft in the next 20 years, comprising 60% of growth and 40% of replacement needs. Our goal is to confirm our leading position in the turboprop market with over 50% of market share. In response to this increasing demand, we are ready to step up to a new level of growth from 2012 onwards, delivering 70 aircraft per year, and reaching a level of 1.8 US$ billion-turnover over the next few years.”

He added: “There is strong commercial potential for ATR in regions such as South East Asia, India and Latin America, where ATR has been highly successful in recent years, and also in other emerging economies. Additionally, there is a strong replacement potential in mature markets. We are glad to offer a family of aircraft known for their lowest operating costs and lowest environmental impact“.

In 2011 ATR will gain certification for both ATR -600 series models. Deliveries of the first ATR 72-600 will start by mid-2011, while deliveries of ATR 42-600s will start before the year end. ATR -600 aircraft will be equipped with the new Armonia cabin, specially developed for ATR by Italian designer Giugiaro. The new cabin features, among other innovations, wider and lighter seats, larger overhead bins, and optional dual class.

In 2011 ATR will continue to expand its customer support network worldwide, with the opening of new training facilities in Toronto, Paris, Johannesburg and Bangalore.

Source: ATR press release