FLY91 Goes Big On India: $1 Billion ATR Order To Build 60-Plane Fleet

Indian regional airline FLY91 has placed a firm order for 40 ATR 72-600 turboprop aircraft worth nearly $1 billion, marking the largest-ever ATR order by a regional airline globally and one of the biggest single orders for the Franco-Italian aircraft maker.

The airline said the deal will help it significantly expand its regional network and connect more unserved and underserved cities across India.

FLY91 Chairman Harsha Raghavan put the value of the order at nearly $1 billion. Founder, Managing Director and CEO Manoj Chacko said the airline had secured an undisclosed discount on the aircraft, which is common for large orders.

Deliveries are scheduled to begin by the end of 2027, with all 40 aircraft expected to arrive by 2032, Chacko told PTI.

The order was formally signed in New Delhi in the presence of Civil Aviation Minister K Rammohan Naidu, ATR CEO Nathalie Tarnaud Laude, Raghavan, ATR Chief Commercial Officer Alexis Vidal and Chacko. ATR is a joint venture between Airbus and Leonardo.

FLY91 Plans Rapid Fleet Expansion

FLY91 currently operates six ATR 72-600 aircraft and runs more than 280 flights a week. With the latest order, the airline expects to expand its fleet to around 60 aircraft over the coming years.

The carrier also plans to lease another six to eight aircraft from the open market, which would take its fleet to 12-14 aircraft by late next year.

Chacko said India's regional aviation market remains significantly underdeveloped, noting that narrowbody aircraft currently serve only around 70 of the country's more than 160 functional airports.

The airline is betting on rising demand for air travel from smaller cities. Turboprop aircraft are generally more economical on short routes and can operate from shorter runways, allowing carriers to connect airports and destinations that may not be suitable for larger narrowbody aircraft such as the Airbus A320 or Boeing 737 MAX.

ATR CEO Nathalie Tarnaud Laude said the ATR 72-600's efficiency, reliability and operating economics allow airlines to offer affordable fares while expanding connectivity.

Funding Plans Underway

FLY91 has not yet finalised financing for the 40-aircraft order. Chacko said the airline is in discussions with lessors and financiers, while upfront payments are currently being funded from its own resources.

The airline has raised $26.3 million and is looking to raise another $26.3 million. Existing investors have already subscribed to a quarter of the additional funding, Chacko said.

Separately, FLY91 is raising ₹250 crore, with 25% of the round already completed.

The airline remains debt-free and expects to achieve cash break-even by the end of the current financial year, followed by profit-and-loss break-even a year later.

Of its roughly 280 weekly flights, 98 receive viability gap funding under India's regional connectivity scheme. The support covers half the seats on those flights and amounts to around $1.16 million a month, according to Chacko.