Goa-based regional airline FLY91, founded and led by Malayali entrepreneur Manoj Chacko, has placed a landmark order for 40 ATR 72-600 turboprop aircraft in a deal valued at around $1 billion, or about ₹9,500 crore.
The order is the largest ATR aircraft order ever placed by a regional airline globally and one of the aircraft maker’s biggest deals in nearly a decade. Deliveries are scheduled to begin in the fourth quarter of 2027 and continue through 2032.
The announcement comes at a significant stage in FLY91’s growth. The airline currently operates six ATR 72-600 aircraft and plans to expand its fleet to more than 60 aircraft over the next five years.
For Chacko, who has more than three decades of experience in aviation, the order is a major bet on the growth of India’s regional aviation market.
FLY91 began commercial operations in March 2024. In just two-and-a-half years, it has operated more than 15,000 flights and now runs close to 280 flights a week across 12 cities. A 13th destination is scheduled to be added later this month.
The airline currently connects a mix of tier-2 and tier-3 cities with larger economic centres. Its network includes Pune, Sindhudurg, Solapur and Jalgaon in Maharashtra; Agatti in Lakshadweep; Hubballi in Karnataka; Tirupati, Vijayawada and Rajahmundry in Andhra Pradesh; and Bengaluru, Goa, Kochi and Hyderabad.
FLY91 plans to add another six to eight aircraft through leases in the near term. This could take its fleet to 12-14 aircraft by late next year, before the newly ordered aircraft begin arriving.
The long-term objective is to build a regional network of more than 60 aircraft and connect cities that are either unserved or poorly served by larger airlines.
The choice of aircraft is central to FLY91’s strategy.
The ATR 72-600 can carry up to 72 passengers and is designed for short-haul regional operations. Turboprops generally have lower operating costs than narrow-body jets on shorter routes and can operate from shorter runways.
That gives FLY91 access to smaller airports where aircraft such as the Airbus A320 or Boeing 737 may not be economically viable.
ATR says its aircraft also produce about 45 percent less carbon dioxide emissions than comparable regional jets.
Manoj Chacko has pointed out that only around 70 of India's more than 160 functional airports are currently served by larger jets. That leaves considerable room for smaller turboprop aircraft to connect regional markets.
FLY91's expansion comes as airlines increasingly look beyond India's major metros for growth.
The government's regional connectivity programme, UDAN, aims to make air travel more accessible by connecting underserved airports and supporting routes that may not initially be commercially viable.
Under the recently announced UDAN 2.0 framework, the government has committed around ₹28,840 crore towards regional connectivity and related infrastructure. Civil Aviation Minister Kinjarapu Ram Mohan Naidu has described regional connectivity as a key pillar of India's aviation growth.
For FLY91, this creates an opportunity to build a network around smaller cities rather than compete head-on with larger carriers on India's busiest trunk routes.
Of the airline's roughly 280 weekly flights, 98 currently receive viability gap funding, covering half the seats under the regional connectivity scheme.
The ₹9,500-crore headline value of the aircraft order does not mean FLY91 will immediately spend that amount from its own balance sheet.
The airline follows an asset-light model and is in discussions with lessors and financiers to fund the aircraft. It is currently using its own resources for upfront payments, while financing arrangements for the entire order are yet to be finalised.
FLY91 has raised $26.3 million so far and is looking to raise a further $26.3 million. Existing investors have already subscribed to about a quarter of the proposed additional funding.
The company is debt-free and expects to achieve cash break-even by the end of the current financial year, followed by profit-and-loss break-even a year later, Chacko said.
That makes the aircraft order both an ambitious growth plan and a test of whether a regional airline can build a sustainable business in India.
India's aviation market is expanding rapidly, but the regional segment has historically been difficult for airlines to crack. Several carriers and routes launched under government-supported regional connectivity programmes have struggled to remain commercially viable.
FLY91 is attempting a different approach: use smaller, fuel-efficient aircraft, focus on underserved markets and build connectivity between emerging cities rather than relying solely on metro-to-metro traffic.
ATR also sees considerable potential in India. The aircraft maker estimates that the country could require 200-300 additional regional aircraft over the next decade.
The new order therefore represents more than a fleet expansion for FLY91. It is a sizeable bet that India's next phase of aviation growth will come not only from its biggest airports, but also from smaller cities and regional economic centres.
The aircraft order comes just after another development that put Fly91 in the spotlight.
Wing Commander Abhinandan Varthaman, the Indian Air Force fighter pilot who became a national figure after the 2019 India-Pakistan conflict, has joined Fly91 as a pilot.
The combination of the high-profile appointment and the landmark aircraft order has brought considerable attention to the young airline and its Malayali founder.
Manoj Chacko, whose family roots are in Kunnamkulam in Thrissur, has more than 30 years of experience in the aviation industry.
He is the founder, managing director and CEO of Fly91. The airline is backed by Convergent Finance, whose managing partner Harsha Raghavan is also Fly91's chairman.
Fly91 takes its name from India's international telephone country code, +91.
The company says its core objective is to create a dedicated regional aviation network connecting emerging cities, communities and economic opportunities across India.
The 40-aircraft order could now give that ambition the scale it needs.