ATR ceases development of ATR 42-600S to focus on existing portfolio

ATR announced (13-Nov-2024) plans to focus on its current product portfolio, "following an extensive market review and in light of lingering tensions on its supply chain". The company will stop development of the ATR 42-600S short take off and landing variant, "reflecting the company's commitment to aligning operations with evolving market dynamics". ATR stated its review of market conditions, technological advancements and future projections "shows a reduced addressable market for the variant compared to the initial forecast". The company reported that the number of targeted airports in Southeast Asia requiring STOL capable aircraft "has significantly decreased, primarily because of runway extensions or the construction of nearby alternative airports, and this trend is mirrored in other key target markets". ATR added that while the changes reduce the addressable market for the ATR 42-600S, it can now operate its current product line at full capacity. The company will shift efforts towards enhancing existing product lines, advancing technological innovation and addressing emerging market demands, including "further breaking into North America" where ATR aims to replace ageing fleets of regional jets and boost point-to-point regional connections. ATR CEO Nathalie Tarnaud Laude stated: "We have identified a series of product improvements which aim at further reducing the costs of operations and increasing the availability of our aircraft. These improvements directly reflect the needs and insight shared with our customers. To achieve these goals, we are working closely with our key suppliers and have developed comprehensive action plans to drive progress on these enhancements". [more - original PR]