Source: ATR official website
Type : ATR 72
Model : ATR72-600 Family : Turboprop
Airframe Manufacturer : ATR
Model Launch : 2007
No of engines : 2
Engine Type – Model : PW 127M
Seat capacity : 72-78 Full Economy Configuration
Weight and Payload : 23000 Kg MTOW / 7400 Kgs Max Payload
Range Capacity : 740 nm / 1370 km
Other important features : Head-up Display, Advanced Avionics, Satellite based Navigation System (PBN)
ATR 72 is a well established Turbo-prop program and is mostly unrivalled except for the Bombardier Q400 aircraft. With the market shrinking in terms of technology evolution in the mainstream Turbo-prop segment, ATR 72 is expected to enjoy a higher degree of competitive advantage. The introduction of the Freighter version is expected to improve the demand for used ATR72- 500 and ATR72-600 asset types. Expansion of the regional connectivity in emerging markets like India increases the opportunities for Turbo-props to excel in such niche segments. While the likes of CRJs, ERJs, A220 and B737-7 Max may be seen as front runners in the 70-110 seat segment, it is not the end of the road for reliable turbo-props, not yet.
The fuel efficiency, (low) maintenance cost exposure and evolving technology in SAF as well as alternate fuel announced by ATR are good signs for steady demand in the foreseeable future. While there is a downward adjustment in the market value against the base value of the asset type, Acumen's overall opinion is optimistic for this asset type. The fin-s online values represent a corresponding sentiment with regards to the current market value in comparison to the base value of the asset.
Market Updates and Position:
As one of the industry's main new product showcases, the 2022 Farnborough Airshow saw plenty of new product and technology development updates prioritising sustainability and energy efficiency. These were some of the most relevant:
ATR and Embraer provide updates on new turboprops — In Ishka's view, the updates about two yet-to- be-launched next-generation turboprops by Embraer and ATR was one of the most relevant general developments at Farnborough. When they launch next year; these programmes will mark the biggest evolutionary step change in design and capability in the passenger turboprop space in the past 40 years. The Embraer next-generation turboprop (TPNG) programme will be launched in the first half of 2023 with two models (tentatively a 70-seat and 90-seat version) entering service in 2028 and 2029 in no respective order. The 100% SAF-capable aircraft has secured 250 LOIS from airlines and is expected to have 15% lower operating cost per passenger versus the ATR72, Embraer claims. For its part, ATR discussed the next generation of its best-selling aircraft — the ATR EVO. First announced in May, the EVO foresees advanced design features and a new powerplant with hybrid capability and, like Embraer's TPNG, the programme is also expected to launch in 2023.
On the regional front, Feel Air Holdings, a new Japanese regional airline holding company created to ‘revitalise’ Japan's regional air travel sector through a franchise business structure, has signed an Lol for up to 36 ATR42s and ATR72s, including the STOL ATR42-600S. At least five regional airlines are expected to be established. Lessor Abelo has signed a Heads of Agreement for 10 ATR72-600s and confirmed 10 ATR 42-600S (STOL - Short Take-off and Landing) that were previously signed by predecessor Elix Aviation in 2019. Delivery of the ATR72-600 begins in 2023, while the first ATR42-600S is expected in Q4 2024. Porter Airlines has ordered another 20 E195-E2s, adding to its existing 30 firm orders and 50 purchase options. Delivery of the first E2 is scheduled this year. Alaska Air Group has ordered another 8 76-seat E175s with options for 13 more, to be operated exclusively on its behalf under CPA by Horizon Air. Delivery starts in Q2 2023. Japanese regional airline ORC (Oriental Air Bridge) has ordered an ATR42-600 for domestic operations from Nagasaki and Fukuoka.
Source: Ishka, AFJ data and Acumen internal analysis
Value Projections:
Source: fin-S Online Valuation tool on SPARTA
Disclaimer:
The opinions and commentary mentioned is solely that of the author. The data used to derive such opinions is sourced from designated sources through proper means of subscriptions. For fin-S Demo or Certified Appraisal Report(s), please contact support@sparta.aero or valuation@acumen.aero respectively.
About the author:
Ameya Gore is a seasoned industry veteran with 16+ years of experience in diverse leadership roles. Along with being CTO — Digital at Acumen Aviation, a Dublin based Aviation Asset Management firm, Ameya is also a Certified Senior Appraiser and provides commercial valuation services to aviation customers. Previously, he has held other senior leadership positions in Technical and Asset Management and Data Management leading global operations, off-shore services and several mission-critical projects across the world.
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