ATR is a world leader in the market for regional turboprop aircraft of 40 to 70 seats. ATR Integrated is a consortium composed of EADS and Alenia, in which they each hold a 50% stake. The BU EADS ATR, that represents EADS’ 50% share of ATR Integrated and that was formerly part of the Aeronautics Division, is now under the direct responsibility of EADS’ CFO and co-COO.

Market and Outlook

The regional aircraft industry has experienced concentration in recent years. During the 1990s, a number of manufacturers merged, closed or ceased production of regional aircraft, leading to the withdrawal from the market of BAE Jetstream, Beechcraft, Fokker, Saab and Shorts. As of 31st December 2005, the worldwide market for turboprop aircraft of 40−70 seats in production was dominated by two manufacturers: ATR and Bombardier. After a number of years of relatively low activity, the regional turboprop market grew dramatically in 2005, due in large part to the advantages of turboprop aircraft over jet aircraft in terms of fuel efficiency and CO₂ emissions. In 2005, ATR delivered 15 new aircraft and registered orders for 90 new aircraft (in addition to a very active second-hand market). ATR’s 2005 orders largely surpassed the number of orders received by its direct competitor, and represented six times ATR’s 2004 order level. ATR has been particularly successful in rapidly growing markets, such as India. Furthermore, the relative fuel efficiency and reduced CO₂ emissions of turboprop engines are expected to sustain this market tendency and the evolution of ATR’s market share over the coming years.

Products and Services

ATR 42 and ATR 72 Series Aircraft. Commencing with the ATR 42, which entered service in 1985, ATR has developed a family of high-wing, twin turboprop aircraft in the 40−70 passenger market that are designed for optimal efficiency, operational flexibility and comfort. In 1996, in order to respond to operators’ increasing demands for comfort and performance, ATR launched a new generation of aircraft designated the ATR 72−500 and ATR 42−500. Like Airbus, the ATR range is based on the family concept, which provides for savings in training, maintenance operations, spare parts supply and CCQ.

Customer Service. ATR has established a worldwide customer support organisation committed to supporting the aircraft over its service life. Service centres and spare parts stocks are located at Toulouse, in the vicinity of Washington D.C. and in Singapore. An e-market place designed to enhance support services developed with Embraer was made available to customers.

ATR Asset Management. Consistent with industry practice, a significant portion of orders received by ATR is conditional on its assistance in financing the purchase either through leasing or loan guarantee arrangements. The ATR Asset Management manages the resulting risk and responds to the growing market for second-hand aircraft. By assisting in the placement and financing of used and end-of-lease aircraft, ATR Asset Management has helped broaden ATR’s customer base, notably in emerging markets, by providing quality reconditioned aircraft at attractive prices and has helped maintain residual values of used aircraft. In the past, clients for such used aircraft have subsequently purchased new aircraft as they have gained experience in the operation of ATR turboprops. Returned aircraft generally remain out of service for approximately five months awaiting reconditioning and resale or leasing, subject to market conditions. ATR has been successful in implementing its strategy of consistent reduction of sales financing exposure.

Production

The ATR production facilities are located near Naples, Italy and at Merignac and Saint-Martin near the Toulouse airport in France. Final assembly, flight-testing, certification and delivery occurs at the Toulouse site. ATR outsources certain areas of responsibility to the Airbus Division, including wing design and manufacture, flight-testing and information technology.