ATR inks deal with Air Deccan for 30 aircraft

Friday, 07 January 2005, 20:30 IST
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BANGALORE: European aviation major Avions de Transport Regional (ATR) Thursday bagged a multimillion-dollar deal with Air Deccan, India's low-cost no-frills airline, to provide 30 aircraft. Of the 30 ATR 72-500 aircraft, 15 will be brand new and the remaining 15 will be leased aircraft that are five years old. The delivery schedule is spread over a five-year period at the rate of six to eight aircraft a year. An agreement for delivering the new-cum-leased aircraft was signed here Thursday by ATR CEO Filippo Bagnato and Air Deccan's managing director G.R. Gopinath. "The ATR 72-500 aircraft have the lowest seat-mile costs in their category and a high degree of commonality with ATR 42, which leads to major cost savings and flexibility," Bagnato said. In addition to the 30 aircraft, ATR will deliver six second-hand aircraft, including three 42-500 models and three 72-500 models. These aircraft will replace six of the existing fleet of ATR aircraft operated by Air Deccan. Currently, Air Deccan operates nine ATR-42s on its feeder routes and three Airbus A-320s on trunk routes across India. The airline is acquiring three more ATR 42-500 this month and February to expand its feeder service. "The sticker price for each ATR 72-500 aircraft is $17.6 million. The exact price will be negotiated in consultation with export credit agencies like Sace Bank of Italy and COFAS of France, who will stand guarantee for 80-85 percent of the cost," Bagnato said. As part of the deal, ATR has agreed to set up a training facility in Bangalore with a simulator to train rookie pilots. The first of its kind in India, the centre will have well-advanced, integrated product support. According to Gopinath, Air Deccan will acquire 15 ATR aircraft on a monthly lease of 0.75-1 percent of the total cost of the aircraft. Though five years old, these aircraft will join the fleet after overhauling and refurbishing by the manufacturers. ATR is owned by the European Aeronautic Defence and Space Co. NV based in France and Germany, and Italy's Alenia.
Source: IANS
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