Few manufacturers can claim ownership of a specific market niche, but it would appear ATR is one of them.
The Toulouse-based aircraft maker, which is a 50/50 joint venture between Airbus and Italian aerospace and defense giant Leonardo, is the world’s undisputed leading producer of turboprop passenger aircraft, a position it has held for decades.
In 2025, ATR recorded 60 gross orders from nine customers across nine countries, with net orders reaching 50 aircraft after cancellations, leaving a backlog of over 160 units.
Like other aircraft makers, ATR has suffered constraints and bottlenecks in its supply chain, which has forced it to slow the pace of deliveries, a circumstance that the company aims to leave behind as it prepares to ramp-up its production.
A second final assembly line at its Blagnac plant, dormant since 2018, is being reactivated and is set to come online by May 2026. This will pave the way for a 20% increase in deliveries and an eventual target of 60 aircraft per year.
While true that these are not the numbers seen in the much larger narrowbody jet market, ATR’s aircraft were never designed to compete in that arena. Instead, ATR has positioned its regional aircraft as a cost-efficient, low-fuel consumption alternative to connect regions, often as an alternative that complements surface transportation options.
What’s more, besides its core regional transport purpose, the ATR family of turboprops is also emerging as a versatile platform that can be adapted to a whole range of missions, from premium and VIP transport to military and even firefighting uses.
Is this enough to counter the reticence that some operators and passengers have traditionally shown for propeller aircraft?
AeroTime travelled back to Toulouse in April 2026 to speak with Alexis Vidal, ATR’s Chief Commercial Officer, who is leading the company’s sales push across a growing number of markets.
“We are in a market, for regional aviation, which is growing,” he said. “It’s a good market to be in, and it’s growing for ATR, as well.”
Vidal remarked how the supply chain constraints ATR has been experiencing has actually led to a backlog buildup
“We are outselling our production by approximately 1.5 for the last two to three years. It’s a bit frustrating because we would like to ramp up our production further than what we are doing,” he said. “It’s good to have a bit of a backlog, though.”
In February 2026, ATR’s CEO Nathalie Tarnaud Laude said that ATR’s order backlog stood at 160 aircraft and had accumulated more than four years.
“That’s strong. But when I see the demand for aircraft and ATRs in particular, I’m convinced we can continue to sell more, therefore we need to produce more,” Vidal said. “But that’s a very good challenge to have. It’s very satisfactory, and we are grateful to our customers for the trust they place on ATR.”
New orders and the replacement market
Over the course of the past 12 months, ATR has been adding new customers such as JSX, a US-based Part 135, semi-private charter operator, and, in early April 2026, it also announced an order from SUM Air, a startup airline that aims to develop regional air transport in South Korea.
But Vidal also said ATR has a strong replacement market worldwide, with many operators of the first generation of turboprops now looking to renew their equipment with the latest versions of ATR’s turboprops.
When discussing the replacement market, Vidal stated that there are usually two important milestones in the life cycle of an aircraft.
One of these is the mid-life transition, which is when the aircraft has been in service for 10 to 12 years, a typical length of period for a lease. The first ATR 600 was delivered in 2011, so many operators are now reaching that threshold of 10 to 12 years for the fleet to be replaced. When an aircraft approaches this time mark, the airline often considers its options, whether renewing the lease, exercising a purchase option or getting new aircraft.
Existing operators, such as Uni Air of Taiwan, Air Algérie and Bangkok Airways, have recently placed orders to replace their existing fleets like-for-like with the new ATR72-600s powered by the more performing XT engine.
The other major cut-off point in the life of an aircraft is the 20-year mark, which is often when operators either retire the airframe or convert it to freighter. This is another milestone that quite a few operators will be hitting in the coming years.
Remarkably ATR’s main competitor may not be other aircraft makers, but land and sea modes of transportation.
“What I think is fascinating for ATR is that I can often say we are not just in aviation; we are in mobility at large,” Vidal said. “We are in an ecosystem of regional mobility, which has intermodality between cars, buses, trains and ferries.”
He illustrated this point by referring to the order ATR had just received from Korean airline SUM Air just days before this interview was conducted.
“Korea has a high-speed train network that runs mostly north to south. Geographical constraints to get from west to east and to the islands mean people would typically take [the] train plus buses or ferries, and this takes hours,” Vidal said. “We see relevant cases to connect those places, where you cannot realistically fill a 200-seater aircraft, with regional aircraft. You cannot even land large jets on some of those airports, but you can deploy an ATR to fly direct routes and save a lot of hours of travel at an affordable cost.”
He added: “That’s where I think the competition, or the complementarity between surface-based transportation and air is where ATR excels.”
Vidal continued with another example: India, a country which is also of strategic importance to ATR.
“In India, we conducted a study of trips between cities. Between 100-400 nautical miles, which is a typical range for regional aviation, only 3% of all those millions of trips were made by air,” he said. “The remaining 97% are made by surface transportation, buses, trains, and cars and that tells us there is a lot of potential. Even if you would grab 1% of market share from ground to air, that would be millions of travelers, and that is a phenomenal opportunity for us to start providing direct air access and save hours of commuting.”
The executive went on to explain how ATR is using anonymized travel data from cellphone operators to plot travel patterns and discern where the best opportunities are to deploy regional aircraft.
“We can model the current mobility patterns. So, it’s not just trying to forecast demand. We are actually modelling the current mobility patterns and trying to understand how much of that can be turned into new routes and direct air service,” he said. “That, I think, is fascinating. That’s why I’m often saying we are not just in aviation, we are in mobility at large, and that makes a very strong difference.”
Of course, in order to capture some of this market, Vidal and his team at ATR need to prove to prospective operators that their turboprop aircraft can operate these routes profitably at an affordable price point.
“For that, you need the aircraft with the lowest fuel burn and the lowest cost per trip,” Vidal said. “And, of course, this is where the turboprop technology and our product, in particular, make a strong difference because compared to a jet of a similar size you can fly a turboprop with 45% less fuel burn and maybe 30% less cost per trip.”
The turboprop as a multi-modal transport tool
The turboprops’ efficiency from a fuel consumption point of view is particularly relevant in Europe, ATR’s home market, where governments have been trying, through different measures, to curtail short haul air routes and asking travelers to switch to trains.
“From a policy making point of view, it’s true that Western Europe in particular might want to ban short flights to the benefit of other modes of transport,” Vidal said. “But we see that as a complementarity. It often does not make sense to have a high-speed train network on routes which are very thin, with low passenger demand.”
“That’s where our regional aircraft excels because we don’t need millions of passengers per year to justify a service,” he added. “We should be complementary.”
“If you map the high-speed train network and regional aviation routes, you will see they are completely complementary. Yes, we don’t necessarily have a case to fly some routes of less than two hours, but that’s not where we operate,” he continued. “What we want is to provide direct air connectivity, where other modes of transport are not an option. Plus, there are the essential services, of course. Around one third of ATR flights are operating either essential or public service obligation services, to islands for example, and we are often the only air connectivity platform available.”
In Europe, Vidal explained, there is a trend to replace smaller jets with turboprops because it makes more sense economically for airlines.
He added: “I think that’s what we are going to see when it comes to carriers that are regional specialists, such as those that fly as feeders for major carriers.”
On this front, ATR has to fight a rather subtle enemy: a dismissive perception of propeller aircraft in some segments of the traveling public.
“This is an important matter for us, in the United States in particular,” Vidal said.
On this topic, Vidal said he would like to say two things. The first is that we must prove and demonstrate that our aircraft can do things that others can’t, he explained. “That’s why we are very satisfied with JSX starting operations on the Part 135 market [a section of the US Federal Aviation Administration (FAA) regulation that refers to commuter and on-demand air carrier operations in the US – ed. note], which we can say is quite a demanding market from a passenger expectations point of view.
“I often say, if and when we prove that JSX operation is successful and net promoter scores from passengers are strong, it will completely prove that turboprops are the right platform for that network because it provides direct air connectivity no other airline or aircraft provide, for example, from Santa Monica (SMO) to Las Vegas (LAS) or Napa Valley (APC),” he added. “It’s the optionality of flying versus driving.”
He continued: “The second thing, if I may, is more of a generational thing because there were first propeller aircraft and then many were replaced by jets. But few young flyers have ever flown the turboprop of the past, so there is no possible comparison of what it used to be to fly an old turboprop versus what ATR provides today. And I think that makes a very strong difference because once you remove the myth of propellers being a ‘thing of the past’, you just judge what you see and what you experience today.”
In this regard, Vidal referred to the fact that new concepts currently being explored by aircraft makers to make their future aircraft more sustainable, such as open rotor architectures, are going to contribute to removing the negative feelings that some people have toward propeller aircraft.
“It’s going to be associated with something that is more efficient, and therefore something of the future which is more sustainable,” he said.”
ATR is already working on the next-generation evolution of the ATR platform with sustainability in mind, the EVO program, which is likely to integrate some form of hybrid-electric propulsion. ATR’s roadmap is to fly the EVO by the end of 2029 and a potential certification and entry into service by 2035 once the final architecture of the aircraft has been defined. It’s only then that ATR would start to transition its current product offering onto the new platform.
“The demand is clearly to understand what technology can continue to reduce carbon emissions. But I can tell you, being a leader in regional aviation, we know it’s not just about the technology,” Vidal said. “It’s also about being reliable and available in places where there may not be clean energy supply in the quantities that the market needs.”
He continued: “Our customers are asking us what the technology roadmap of ATR is. We are pretty clear: we are doing research on hybridizing the ATR platforms with a mix of a thermal component, that will be able to use sustainable aviation fuel, and an electric motor to reduce carbon emissions. We believe that this technology will be the right one to continue to operate in whichever places in hundreds of countries ATRs fly to.”
There are two different types of customers,” Vidal added. “The first of them is what I would call the early adopters, which are very keen on adopting new technologies that can further reducing CO2 emissions, or remove them altogether, and the rest of the customer base, which is also interested in reducing emissions, but is first and foremost interested in having something which is operational.”
ATR’s American Dream
At this point, the conversation switched back to the US as a sort of “frontier market” for turboprops, but one that holds promise for a category leader like ATR.
“To be short, in the US we have four market segments: 30, 50 and 70-seaters, and freight. Of these, freight is quite separate from the passenger transport market,” Vidal said” “First, we already have a very strong value proposition with our freighter program and we have FedEx as one of the largest ATR operators in the world, with 60 plus aircraft, a mix of new and legacy [cargo conversions – ed. note] aircraft.”
“Second are the passenger transport segments,” he continued. “The 30-seater segment is regulated by Part 135, which is where JSX operates. And I think here we have a strong value proposition. JSX has launched operations earlier this year, and I think we can continue to deploy more ATRs to their network and see whether the customers are enjoying it.
“I think net promoter scores are strong and there is immense possibility. I often quote Alex Wilcox, the CEO of JSX, who said our aircraft is ’half, half, double’, which means an ATR burns half the fuel of a jet and requires half the runway compared to a jet, all while doubling its reach, in terms of the number of possible airports being served.”
“A great way to see that is our 70-seater, the ATR72-600,” Vidal said. “We’ve seen Aleutian Airlines now starting operations in Alaska and I believe we can continue to deploy more aircraft in those parts of the of the country where the demand is thin so you can’t really fly larger jets but you still have a need for direct air connectivity and essential services. So, I believe we will continue to deploy more assets into the 70-seater segment in the US.”
In between, Vidal continued, there is the 50-seater, which is the replacement for regional jets in the United States.
“For this, we need to continue working with our prospective airlines to have the right product, which is typically a triple class cabin: 10 first class seats, 20 premium economy seats and 20 economy seats,” Vidal said. “These aircraft do mostly feeding, but they can also provide direct connectivity, as well.
“We need to better understand what are the limitations of the scope clauses [a set of agreements between airlines and pilot unions in the US which determine which type of aircraft can be flown on certain feeder routes and under what conditions – ed. note], we need to understand how the industry is adapting in 2026 to the dynamics of this market.”
Vidal also noted that when looking at the market as a whole, including the 30, 50 and 70-seat segments and freighters, ATR actually has a strong presence and value proposition in the US.
He also shared that ATR’s transatlantic ambitions have not been much affected by the ongoing tariff rows and other geopolitical tensions.
“So far, we have been able to navigate through that and continue to serve our customers in the best manner possible,” he added.
Powering regional connectivity in Asia, Africa, and Latin America
Also key to ATR’s growth plans is Asia, a region which already represents around 40% of the aircraft maker’s orders and deliveries. ATR has also built a significant support ecosystem in Asia, which includes a training center and a logistics center for spares.
“Asia is, of course, a lot about demographic growth, a lot about geographic constraints, with many islands, archipelagos, mountains and a general need for connectivity,” Vidal said. “That’s why ATR has been growing very well in Asia, and it will remain strong.”
Vidal also pointed out that the country with the largest number of ATR aircraft (more than 100) in service is Indonesia.
“Asia has mostly been about growth and the development of air connectivity. So that’s why we have, I think, the best value proposition to fuel that growth and provide the right assets to keep costs per trip low,” he explained. “Indonesia has been very strong. The Philippines is a strong market as well, with a lot of islands to be served. There we often compete with ferries. New Zealand and the Pacific are strong market for us too.”
A particularly promising market is India, which, Vidal pointed out, is already ATR’s second largest single market, with some 80 aircraft there.
“The government has been instrumental in the regional connectivity scheme, called UDAN. It provides support to airlines to launch new routes, and many of them remain in place, since they have become viable after the three-year subsidy period ends,” Vidal said. “But the institutions are pretty clear in that, for that, you need the right assets. One thing is to have the policy, but another thing is to have the right tools and assets, and the ATR is, I think, the perfect asset to develop new routes in India.”
India’s largest low-cost airline IndiGo is an ATR operator and so are a number of other smaller carriers, such as Alliance and Fly91. The latter is a new growing regional carrier which launched in 2024, operating out of the tourist hotspot of Goa, with an all-ATR fleet.
Contrary to local media reports, Vidal denied that ATR is currently planning to set up an assembly line in India.
“There were rumors or press clippings that were quoting other industrial officials saying they would see an assembly line for ATR. We are not party to that,” he said. “So, for the sake of clarity, our ambition is to continue to grow in India. We have something like 70 aircraft there at. At the moment I think that the market can absorb another 200 aircraft. We want to be in close proximity to our customers and that’s why we are present in the country with customer support facilities and teams.”
Vidal underlined that Africa also offers interesting opportunities for ATR. In 2025, Air Algérie committed to take 16 new aircraft, Ethiopian Airlines took ATR72-600 for its new affiliate Air Congo and other aircraft were placed with operators in Gabon and Kenya.
“Globally speaking, we have about 100 aircraft in the African continent, with many operators and we see a lot of opportunities,” he said. “I think that’s a good example of how we can find ways to deploy capacity and create or restore the air connectivity in many African countries.”
In Latin America, financial trouble has affected some of the operators in what has traditionally been a strong market for ATR.
“Last year we had several airline restructurings, but I think that’s part and parcel of the market, to restructure and grow again,” Vidal said. “In Latin America, to keep it simple and short, we are looking to regrow the fleet, in particular in Brazil, because our credentials are very strong there.”
Lessors have also been instrumental in fostering ATR’s growth and global reach these last few years, a role which Vidal expects them to continue playing.
“I think we are in a very healthy situation now in which we’ve been selling our production by a factor of 1.5. This means that our next delivery slots are getting longer and longer down the road,” he said. “But in the meantime, we have been using our strategic partners, the lessors, to take what we call speculative orders that are ready for delivery in 2026-27 and to provide capacity for the market’s short-term needs.”
Vidal used the example of Ethiopian Airlines securing ATR aircraft on lease for its Congo venture to illustrate his point. The deal was closed in November 2025 during the Dubai Airshow, and the aircraft are already being delivered during the first half of 2026, representing a six-month time period between the airline’s final commitment and the delivery.
“That’s how we want to partner with our lessors to be able to provide that short term capacity on the spot for one, two or three aircraft, while we continue to work on direct sales for longer term fleet planning and replacements,” he explained.
The role of lessors
Vidal also explained how ATR tries to keep a balance between lessor and operator orders.
“What we want is to be able to, on one hand, have short term capacity that is already pre-booked with lessors. So, we know we have a customer and the financing attached to it, and we work with lessors to find an airline for that aircraft within a short period of time,” he said. “On the other hand, we want to be able to continue to sell directly to airlines, and we want to balance that out.”
“A good rule of thumb in the industry is to allocate maybe a maximum of a third or one quarter of your production to speculative lessor orders. Why? Because you don’t necessarily want to concentrate your production on one distribution channel,” he continued. “We find that pretty appropriate for us and our lessors are also helping us to finance deliveries for the airlines, whether via financial lease or through a sell-and-lease-back with an operating lease later on.”
New missions
Besides the core regional aviation market, ATR turboprops are becoming the platform of choice for a few other product variations.
These include the ATR HighLine, a portfolio of premium cabin concepts designed with the luxury and VIP market in mind, ATR’s snipe at the globally growing executive and VIP aviation market.
“The ATR HighLine is the embodiment of a premium experience with the efficiency of an ATR of a turboprop,” Vidal said. “We want to associate those two words because that speaks a lot as to what we want to do, a premium experience with the efficiency of a turboprop.”
ATR is also not immune to the defense procurement drive that is sweeping through Europe. In this case, it is ATR’s partner, Leonardo, which is responsible for developing military applications such as a maritime patrol version of the ATR72. Third party companies, like two startups also based in Toulouse, Positive Aviation and Kepplair Evolution, are also developing a firefighting aircraft based on the ATR airframe.
“We have non-commercial applications like maritime patrol, for example, which is very important for nations to manage their sovereignty,” Vidal explained. That market segment is managed by Leonardo, our partner company and shareholder. That’s why you would see some opportunities or some deliveries linked to maritime patrol aircraft.
“In the future, we will continue to look selectively at other opportunities, and whenever that makes sense, we will develop ATR in the domain.”