Brazilian-built Embraer ERJ 170 and 190 both (less than 100 seat aircraft powered by jet engines) and Canadian-built Bombardier CRJ 200 (70-seater) and CRJ 900 (90-seater) also powered by jet engines may benefit from the sales tax benefits on ATF (at par with turbo-prop aircraft) as announced by the Finance Minister on Wednesday.

Paramount Airways uses ERJ 170s, while Air Sahara and Indus Air use CRJ 200s. The Bombardier CRJ 900 is an all-new aircraft, which is yet to enter service with any airline in India.

The ATR 42 and ATR 72 are the only turbo-prop aircraft being used by scheduled airlines in India (Jet Airways, Air Deccan, Kingfisher). There have been reports that Air Deccan is looking at separating its ATR operations into a new company.

With new smaller airports being upgraded, demand for regional jets and turbo-props will increase. These aircraft will also be used by airlines for their feeder routes. Incidentally,