ATR Adds To Bumper Order Crop With Fresh Sale To GECAS

ATR, a Franco-Italian builder of turboprop passenger aircraft, said Wednesday it has booked two new firm orders and two options from GE Capital Aviation Services, the commercial aircraft leasing and financing arm of General Electric Co. (GE).

The orders for short-haul, 78-seat ATR72-600 aircraft adds to ATR's bulging order book, which was boosted by a record order intake in 2011 of more than 150 fresh orders, making a backlog equivalent to four years of production. The previous annual sales record was 2007, when ATR sold 113 aircraft.

ATR has benefited from the rising cost of jet fuel, which has encouraged regional airlines to opt for turboprop aircraft, which offer reduced fuel burn and generally cheaper operating costs than jet aircraft.

The latest GECAS orders, potentially worth more than $91 million if the options are converted into firm orders, follows on from a firm contract for 17 ATR aircraft and the same number of options signed at the Paris Air Show in June.

GECAS has already leased three of the aircraft to Brazilian regional carrier TRIP Linhas Aereas and has signed with Jet Airways (India) Ltd. (532617.BY) for another five units, ATR said.

ATR is a joint venture between European Aeronautic Defence & Space Co. NV (EAD.FR) and Alenia Aermacci, a unit of Italy's Finmeccanica SpA (FNC.MI).

With some 180 airlines now operating ATRs worldwide, it has become easier for leasing companies to place their aircraft. About 20% of the ATR airfcraft sold last year went to leasing companies.

-By David Pearson, Dow Jones Newswires; +331 4017 1740; david.pearson@dowjones.com

Allete (NYSE:ALE)
Historical Stock Chart
From May 2024 to Jun 2024