Regional Airline Fly91 Nears Order for at Least 20 ATR Turboprop Aircraft

Indian regional airline Fly91 is close to placing an order for at least 20 turboprop aircraft from Franco-Italian planemaker ATR to expand its operating fleet, according to three sources familiar with the matter.

The potential transaction represents a notable bet on India's regional aviation sector. The Indian government has actively worked to integrate dozens of smaller cities into the national air network through a subsidised regional connectivity scheme, although several routes under the initiative have previously been discontinued.

According to two sources, the upcoming order could also include options for several additional aircraft. One source indicated that an official announcement regarding the deal could be made as early as this week.

A spokesperson for ATR declined to comment on the matter, while Fly91 did not immediately respond to requests for comment. The sources spoke on condition of anonymity because the negotiations remain confidential, noting that the deal is not yet finalized and that the final aircraft count and timeline could still change.

For ATR, the agreement would provide a significant boost. The manufacturer dominates the turboprop market but relies on a relatively limited number of geographic markets for its orders. Both India and Indonesia remain among the most active markets for turboprops, which are valued for their fuel efficiency on short domestic and island-hopping routes as well as their role in supporting regional development.

Fly91 launched commercial operations in 2024, operating out of Goa’s Manohar International Airport. The carrier currently flies ATR 72-600s to approximately a dozen destinations. Backed by private equity firm Convergent Finance, the airline has previously stated its objective to induct 30 aircraft and connect more than 50 cities within a five-year timeframe.

The broader market context includes substantial government investment. Earlier this year, India—recognized as the world’s fastest-growing aviation market—announced plans to invest approximately $3 billion into the regional connectivity scheme known as Ude Desh ka Aam Nagrik (UDAN). The initiative aims to increase air transport to under-served regions by developing 100 airports from existing unserved airstrips and subsidizing routes that might otherwise remain commercially unviable.

"Fly91's move to expand its fleet through a substantial turboprop order highlights the growing viability of regional aviation in India. Backed by Convergent Finance, the airline is positioning itself to capture demand in under-served markets supported by government connectivity initiatives. For early-stage and regional business models in capital-intensive sectors like aviation, aligning growth strategies with public infrastructure development is critical to achieving long-term operational scale." — Dr. Shishir Gupta, Founder & CEO, StartupLanes