ATR halts STOL program amid shifting market demands

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ATR halts STOL program amid shifting market demands

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Airbus A380 | Airbus

By Sky Industry News

Nov 14, 2024

ATR, a joint venture between Airbus and Leonardo, has announced a strategic shift in its operations. The company will no longer pursue the development of the short takeoff and landing (STOL) ATR 42-600 variant, known as the ATR 42-600S. This decision comes after an extensive market review and challenges within its supply chain.

The aircraft manufacturer cited worsening market conditions and technological advancements as key factors influencing their decision. According to ATR, the need for STOL-capable aircraft has decreased due to runway extensions or new alternative airports, particularly in Southeast Asia. This trend is also observed in other significant markets.

“While this reduces the addressable market for the ATR 42-600S, it means that our current product line can operate at its full capacity,” stated ATR.

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Nathalie Tarnaud Laude, CEO of ATR, emphasized the company's responsibility to continuously evaluate its product portfolio. “The decision to halt the STOL project reflects our dedication to operational efficiency and long-term sustainability.” She highlighted that ATR would focus on further investments in its existing products, specifically the ATR 42 and ATR 72.

Laude noted that delivering strong value propositions to regional airlines has been central to their success over the past four decades. As part of this commitment, ATR plans several product improvements aimed at reducing operating costs and enhancing aircraft availability.

ATR's strategy includes breaking into North America more effectively by replacing aging fleets of regional jets and improving point-to-point regional connections. The company re-entered the US market in January 2018 with Silver Airways introducing 16 ATR 42-600 and four ATR 72-600 aircraft.

Despite challenges in the US regional market moving away from smaller aircraft like those similar in capacity to the ATR 72-600, there remains potential for growth. According to Airlines for America (A4A), a US airline lobby group, there has been an increase in average seats per domestic flight within the regional jet market from 57 seats in 2010 to 68 seats in 2024.

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