Regional aircraft manufacturer ATR expects India’s next phase of aviation growth to emerge beyond metro cities, with tier-2 and tier-3 markets offering significant opportunities as regional connectivity expands.

Speaking to businessline, Alexis Vidal, Senior Vice President Commercial, ATR, said that while India has become the world’s third-largest domestic aviation market over the past decade, a large share of inter-city travel outside metro regions continues to be served by rail and road transport.

According to Vidal, nearly 90 per cent of India’s inter-city trips fall within a distance of 740 kilometres, which aligns with the operating range of turboprop aircraft.

However, only about 3 per cent of these journeys are currently undertaken by air.

According to the regional aircraft manufacturer, government-led regional connectivity initiatives have contributed to the expansion of aviation access in smaller markets.

On the upcoming modified UDAN (Regional Connectivity Scheme), the regional aircraft manufacturer noted that investments in additional airports and extended route financing could improve the accessibility and viability of regional air travel across the country.

Under the initial UDAN scheme, more than 600 routes have been operationalised, connecting 93 unserved and underserved airports.

Besides, the Centre plans to increase the number of airports in the country to 230 by 2030.

These developments, Vidal said, create a foundation for regional aviation growth, particularly in smaller cities where direct connectivity remains limited.

As per insights from ATR’s MobilityMonitor, a backcast model analysing journeys across transport modes, India has the potential for more than 400 additional regional air routes, which could add approximately 35 million annual passengers in the regional segment.

Furthermore, he pointed out that turboprop aircraft remain economically viable for short-haul routes, particularly sectors below 700 kilometres.

Compared to larger jets, ATR aircraft consume up to 45 per cent less fuel on such routes, enabling lower operating costs while maintaining service frequency.

Additionally, Vidal said regional connectivity can be expanded by linking smaller cities directly without dependence on larger hubs.

He noted that fleet modernisation and right-sizing would become increasingly relevant as airlines expand into emerging markets.

Meanwhile, ATR expects India to emerge as its largest global market by 2030, supported by expanding regional connectivity, domestic demand, and growth potential across short-haul routes.

On the operational front, ATR said it has developed an ecosystem in India over the past 25 years that includes training, maintenance, and customer support services.

The company operates a customer support centre in Bengaluru and works with maintenance, repair and overhaul providers in the country.

Regarding manufacturing, ATR stated that it currently has no plans to establish production facilities in India.

Nevertheless, the company said it remains open to expanding its footprint in line with market requirements.

Published on April 27, 2026