India’s regional aviation market could be heading for another significant shake-up, with young airline Fly91 reportedly close to ordering at least 20 turboprop aircraft from ATR.
The potential deal would be a major move for an airline that only began commercial operations in 2024. It would also give ATR an important boost in one of the world’s fastest-growing aviation markets, where demand for smaller aircraft is rising alongside efforts to connect more cities by air.
Three people familiar with the negotiations told Reuters that Fly91 is close to placing the order. The deal could also include options for several additional aircraft, although the negotiations have not yet been completed.
An announcement could come as early as this week, according to two of the sources. However, the people familiar with the talks stressed that the final aircraft count and timing could still change.
ATR declined to comment on the possible deal, while Fly91 did not immediately respond to a request for comment.
For Fly91, the significance of the potential order goes well beyond adding aircraft. It could mark the point at which the airline begins moving from a small regional startup toward a much larger player in India’s domestic aviation market.
Fly91 Is Betting Big on Regional India
Fly91 began flying from Goa’s Manohar International Airport in 2024, operating ATR 72-600 aircraft on regional routes.
The airline has set out an ambitious growth plan. It has previously said it wants to build a fleet of 30 aircraft and connect more than 50 cities within five years.
A 20-aircraft order would therefore represent a substantial commitment to that strategy.
It would also give Fly91 considerably more room to develop its network. Instead of concentrating only on established high-demand routes, the airline could use additional turboprops to build connections between smaller cities where passenger demand may not yet justify larger aircraft.
That is where the ATR 72-600 fits particularly well.
The aircraft is designed for short-haul regional operations, making it a natural choice for airlines looking to serve markets that sit outside the traditional network of major jet operators.
For Fly91, that could mean more opportunities to link India’s smaller cities directly rather than relying on passengers to travel through major hubs.
Why Turboprops Still Matter in India
India’s aviation growth is often associated with large orders for narrowbody jets. The country’s biggest airlines have been expanding rapidly as more people take to the skies and domestic air travel becomes increasingly accessible.
But the economics of regional routes are different.
A city pair with relatively modest passenger demand may not be able to support a larger Airbus or Boeing aircraft on a regular basis. Flying a smaller turboprop can make more sense, particularly on shorter sectors.
That is one reason ATR has remained a dominant force in the turboprop market.
The company’s aircraft are used extensively on short domestic routes, as well as island and regional services where frequency and operating economics can be more important than outright capacity.
India is one of the markets where that model has particular relevance.
The country’s geography and enormous population mean there are potentially hundreds of city pairs that could benefit from better air connectivity. The challenge is finding routes that can support regular commercial operations.
That is where airlines such as Fly91 are attempting to find an opening.
Government Push Adds to the Opportunity
Fly91’s expansion plans are also unfolding against the backdrop of India’s effort to improve regional air connectivity.
The government has been using its Ude Desh ka Aam Nagrik, or UDAN, regional connectivity program to bring more smaller cities into the aviation network.
The initiative was designed to make air travel more accessible while encouraging airlines to operate routes that might not initially be commercially attractive.
The government said earlier this year that it planned to invest around $3 billion as part of the regional connectivity push. The plans include developing 100 airports from existing unserved airstrips and continuing support for routes that would otherwise struggle to remain viable.
That creates an obvious opportunity for regional airlines.
It also highlights one of the biggest risks.
Opening a route is one thing. Keeping it operating profitably is another.
Several routes introduced under regional connectivity programs have eventually been discontinued, showing just how difficult it can be to build sustainable demand in smaller markets.
Fly91’s strategy will therefore depend not only on acquiring aircraft but also on choosing routes carefully and generating enough traffic to make those routes work without relying indefinitely on subsidies.
A Major Order for ATR
The reported Fly91 aircraft deal would also be notable for ATR.
The Franco-Italian manufacturer dominates the global turboprop market, but the segment is considerably smaller than the market for mainstream narrowbody and widebody jets.
That makes major commitments from growing airlines particularly valuable.
India and Indonesia have emerged as important markets for turboprops because of their large domestic networks and the number of relatively short sectors where smaller aircraft can operate efficiently.
A potential order for at least 20 aircraft would strengthen ATR’s position in India while deepening its relationship with Fly91.
The airline already operates ATR 72-600s, so adding more aircraft from the same family would allow it to maintain a common fleet rather than introducing a new aircraft type as it expands.
That can matter for a growing airline because fleet commonality can simplify areas such as pilot training, maintenance and operations.
The Timing Is Important
The timing of Fly91’s reported order is perhaps just as interesting as the size of the deal.
India’s aviation market has been expanding rapidly, but the growth has not been evenly distributed.
The largest airlines have been adding capacity between major metropolitan areas, while the government continues to look for ways to bring smaller communities into the national air network.
That leaves a gap in the middle.
There are cities with enough potential demand to support regular flights, but where operating a larger aircraft may not yet make economic sense.
Regional airlines using turboprops can target precisely those markets.
For Fly91, the opportunity is to establish itself before those routes become crowded. If the airline can build a network of profitable regional connections, a larger fleet could give it the scale needed to compete more effectively.
The reported ATR order suggests that management is willing to make a substantial bet on that opportunity.
Growth Will Not Be Without Risks
There is, however, a considerable amount riding on the expansion.
Regional aviation can be unforgiving. Passenger numbers can fluctuate sharply, particularly on routes where there are limited business travellers or where demand is heavily dependent on tourism and local economic activity.
Aircraft utilization will also be important. A growing fleet only creates value if the aircraft spend enough time flying productive routes.
Fly91 will therefore need to balance expansion with demand. Adding too much capacity too quickly could put pressure on the airline just as easily as a shortage of aircraft could restrict its growth.
The potential order also does not guarantee that every planned route will succeed.
India’s regional aviation experiment has already shown that some markets can be difficult to sustain even when government incentives are available.
That makes Fly91’s next phase particularly worth watching.
Fly91 Could Become a Bigger Regional Player
If the reported order goes ahead, Fly91 would have a much larger platform from which to pursue its ambitions.
At least 20 additional ATR turboprops would give the airline the ability to expand its network significantly, add frequencies where demand is strong and explore new regional markets.
It would also send a broader signal about the Indian aviation industry.
The country’s next phase of growth may not be driven only by bigger aircraft and busier metropolitan airports. Smaller aircraft could play an equally important role in connecting communities that remain outside the country’s main aviation corridors.
That is the market Fly91 is targeting.
The airline’s challenge now is turning that opportunity into a sustainable business.
For ATR, meanwhile, a sizeable Fly91 order would reinforce the continued importance of turboprops in a country where aviation demand is growing well beyond the largest cities.
The deal has not yet been finalized, and the final aircraft count could change. But if Fly91 does commit to at least 20 more ATR aircraft, it would be one of the clearest signs yet that India’s regional aviation ambitions are moving into a new phase — and that Fly91 intends to be one of the airlines leading it.
For more on Fly91, see: ATR and Fly91 Extend Maintenance Deal to Power Growth
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