» Business » ATR plans subsidiary in Bangalore

ATR plans subsidiary in Bangalore

August 04, 2006 12:15 IST

The $540 million Toulouse-based regional aircraft manufacturer Avions de Transport Regionale is planning to set up a subsidiary in Bangalore.

ATR, a joint venture firm promoted by European aerospace majors Alenia Aeronautica and EADS, will initially set up a liason office that will later develop into a full-fledged mainteinance hub. 

However, investment for the  facility was not finalised. ATR is leading manufacturer of turboprop aircraft with 50 to 70 seats. This proposed hub in Bangalore will focus on assisting aircraft operations and reducing maintenance cost for domestic airlines.

According to industry analysts, the planned subsidiary will help ATR's major domestic clients such as low-cost carrier Air Deccan, Indian Airlines, Jet Airways and Kingfisher Airlines.

Last month, Kingfisher Airlines has signed a global maintenance agreement with ATR for spare parts and maintenance service for the ATR 72-500 new aircraft fleet of the airline. 

Under this 10-year GMA, ATR will handle the repair of equipment and line replaceable units, plus an inventory of spare parts and engines on lease at Kingfisher Airlines premises, as well as the airframe maintenance checks and the maintenance of propellers and landing gears, for a total amount of about $ 50million.

Through this agreement, ATR will cover a range of maintenance services for the 35 ATR 72-500s fleet already ordered by Kingfisher.

To add, ATR's another major client Air Deccan is operating 20 ATR turboprop aircraft. Jet is also operating eight modern ATR 72-500 turboprop aircraft.

Do you want to discuss stock tips? Do you know a hot one? Join the

P R Sanjai in Mumbai
Source: source