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Airlines business
Friday, 20/07/2018, 08:25:56 AM
ATR doubts low oil price will seriously impact orders
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ATR warns that oil price volatility could cause airlines to delay ordering aircraft but is sceptical that lower prices will erode the operating advantages of its turboprops.

Speaking at the manufacturer's annual results briefing in Paris today, chief executive Patrick de Castelbajac said that cheaper fuel would give "airlines more cash to renew their fleets".

Turboprops will also remain more efficient than jets over short distances, despite a fluctuating oil price, he insists. "When we sell an aircraft, we sell it for 25 years. Does anyone believe the fuel price will be where it is today in 15 or 20 years? The best way to hedge that bet is with our product," he says.

Recalling the short-lived surge in demand for smaller regional jets when the fuel price fell sharply around the turn of the millennium, he adds: "I hope the industry has some memory. A lot of these small jets were grounded when the price began to rise again. When I talk to airlines, they are concerned, but they know our game is a long-term game."

Source: flightglobal.com

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