Home News Business IndiGo to buy 50 jets from ATR for $1.3b

IndiGo to buy 50 jets from ATR for $1.3b

MUMBAI

European turbo-prop maker ATR has signed a provisional order to sell 50 ATR 72-600 aircraft, worth more than $1.3 billion at list price, to Indian airline IndiGo, the companies said on Tuesday.

ATR, which is jointly owned by Airbus and Italian company Leonardo, said the aircraft were set to start operations by the end of 2017.

If completed, the IndiGo plane deal would mark the biggest order for ATR, whose rivals include Bombardier, in at least a decade.

“Their decision further proves that our aircraft is the right tool to link communities and develop business throughout India,” said ATR Chief Executive Christian Scherer, commenting on the provisional order with IndiGo.

IndiGo, which also reported a drop in quarterly profits on Tuesday, currently flies the Airbus A320-family jets and is one of the European planemaker’s biggest customers.

IndiGo’s owner InterGlobe Aviation posted a nearly 25 per cent fall in quarterly profit, hurt by rising fuel costs.

Net profit fell to Rs4.4 billion ($68.04 million) in the quarter ended 31 March compared with Rs5.84 billion a year earlier, the company said on Tuesday. Fuel costs during the fourth quarter rose 71 per cent to Rs17.51 billion from the year-ago period, InterGlobe said.

Agencies

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