ATR Plans Production Increase Amid Strong Demand, Supply Chain Challenges
– French-Italian aircraft manufacturer ATR is preparing to ramp up production in following a year of robust order inflows, despite facing ongoing supply chain constraints that impacted deliveries in .
The company reported total revenue of $1.2 billion for , with customer support and services reaching a record $538 million. This services growth helped offset the impact of lower aircraft deliveries, according to a company press release.
Orders and Backlog
ATR logged 60 gross orders and 50 net orders in , bringing its current backlog to over 160 aircraft. Significant orders included commitments from Air Algérie and UNI Air for ATR 72-600 aircraft, representing the largest single orders ATR has received since .
“Demand for our aircraft is strong, regional operators want more capacity,” said Alexis Vidal, senior vice-president for commercial.
Delivery Targets and Supply Chain Issues
Despite the strong order book, ATR delivered 32 aircraft in , slightly below its initial target of 35. Chief Executive Officer Nathalie Tarnaud Laude attributed this shortfall to persistent supply chain issues, particularly concerning landing gears and engines.
“We do not measure the success of a transition year like on one number,” Tarnaud Laude stated. “We are determined to raise our delivery rate; and that is why we have worked on concrete steps to address the issues that limited our output.”
The company has been working to stabilize production and improve assembly-line flow, with Marion Smeyers, senior vice-president for operations and procurement, noting a steady decline in part shortages – now down to one-third of early- levels – alongside close collaboration with suppliers.
New Assembly Line and Production Ramp-Up
To address the growing demand and overcome supply chain hurdles, ATR is reactivating a second final assembly line at its facility in Blagnac, Toulouse. This line, which was operational until , is expected to be active by .
The reactivation of the second assembly line is projected to increase deliveries by approximately 20% in , eventually reaching an annual output of 60 aircraft.
“We have strengthened every part of our organisation and laid the groundwork for a safe, sustainable and credible increase in production” as it prepares for a ramp-up from onwards, Tarnaud Laude added.
Market Activity and Fleet Developments
ATR reported that 19 new operators joined its fleet in , and more than 90 transactions occurred in the second-hand market. The leasing market also remained active, with aircraft being placed with airlines from lessors’ order books.
Fleet developments during the year included the launch of new operations in North America, such as public charter services in the United States utilizing ATR 42-600 aircraft, and the certification and delivery of the first ATR-600 in Canada.
Long-Term Technology Investments
Looking beyond immediate production goals, ATR is also investing in longer-term technology initiatives. The manufacturer is participating in two European Clean Aviation research programs focused on developing hybrid-electric propulsion and other low-emission technologies. These projects aim to support a hybrid-electric ATR 72-600 testbed by the end of the decade.
“ATR is relevant today, and we will remain relevant tomorrow,” Tarnaud Laude said, emphasizing that the groundwork laid in will position the company to meet anticipated demand as production increases in the coming years.
