Fly91’s 40-aircraft bet: Why India’s smaller cities are the next aviation frontier

The regional airline is looking beyond India’s major metros, with turboprops seen as a better fit for shorter routes and smaller airports

India’s aviation growth is no longer only about connecting Mumbai, Delhi, Bengaluru and other major cities. An equally important part of the country's next aviation story could be the smaller cities and towns that are still waiting for better air connectivity. Goa-based regional airline Fly91 is now making a big bet on this opportunity.

The airline has placed a firm order for 40 ATR 72-600 turboprop aircraft, one of the largest single orders ever placed with Franco-Italian aircraft manufacturer ATR. The deal is worth around $1 billion at list prices, although Fly91 CEO Manoj Chacko said the airline has received an undisclosed discount.

The first aircraft is expected to be delivered in the second half of 2027, with all 40 aircraft scheduled to arrive by 2032 or early 2033. For Fly91, this is not simply a fleet expansion. It is a bet that India's smaller cities can become the next major source of domestic air travel.

Why smaller cities matter

India has more than 160 functional airports, but according to Chacko, narrowbody aircraft such as the Airbus A320 and Boeing 737 serve only around 70 of them. This leaves a large part of the country's airport network with limited air connectivity.

Many of these airports are in smaller cities where passenger demand may not be strong enough to support a larger jet every day. But that does not mean there is no demand.

People in these cities still need to travel for work, education, healthcare, tourism and family reasons. The problem is that travelling by road or rail can take several hours, while larger aircraft may not always make economic sense on shorter routes.

This is where the ATR 72-600 fits in.

Why ATR is the right aircraft for Fly91

For Fly91, choosing the ATR 72-600 is closely linked to the type of network it wants to build. The turboprop is designed for short regional routes and can operate economically on sectors where a larger jet may not be the best option. It can also serve airports with shorter runways and more limited infrastructure.

That gives Fly91 the flexibility to connect Tier-2 and Tier-3 cities without having to wait for those markets to develop enough traffic to support larger aircraft. In simple terms, Fly91 does not need every route to have hundreds of passengers a day. It can instead match the aircraft to the market.

That could be particularly useful in India, where regional routes often connect cities that are relatively close to each other but have limited direct air services.

The ATR 72-600 can therefore act as a bridge between India's major aviation hubs and smaller regional airports.

From six aircraft to 60

Fly91 currently operates six ATR 72-600s and connects 12 destinations, including Goa, Pune, Hyderabad, Bengaluru, Solapur, Jalgaon, Sindhudurg, Kochi, Agatti, Rajahmundry, Vijayawada, Tirupati and Hubballi.

The airline plans to lease another six to eight aircraft from the open market before the new aircraft begin arriving. This would take its fleet to around 12-14 aircraft by late next year.

By the time all 40 aircraft from the new order are delivered, Fly91 expects to have a fleet of around 60 aircraft. That is a dramatic expansion for an airline that began commercial operations only in 2024. The challenge, however, will be ensuring that this growth is matched by passenger demand.

The regional aviation challenge

India has already seen several regional airlines struggle to remain profitable. Government support has played an important role in making some regional routes possible. Under the regional connectivity scheme, airlines receive viability gap funding for certain routes where passenger demand alone may not be enough to make operations financially sustainable.

Fly91 currently operates around 280 flights a week, with 98 of them receiving such support, according to Chacko. The airline says the funding is worth around $1.16 million a month. This highlights both the opportunity and the challenge.

Government support can help an airline establish a route, but long-term success ultimately depends on whether enough passengers continue to use that route. For Fly91, therefore, the next few years will be about finding the right balance between affordable fares, aircraft utilisation, route selection and passenger demand.

Why turboprops make economic sense

Fuel is one of the biggest costs for any airline. On short routes, operating a larger jet can be difficult to justify if the aircraft is not carrying enough passengers. A turboprop such as the ATR 72-600 is designed for this environment. Its economics make it better suited to shorter flights, while its size allows airlines to operate more frequent services without having to fill a much larger aircraft. This is important for regional connectivity because passengers do not necessarily need more seats. They need more convenient connections.

A smaller aircraft flying regularly can sometimes be more useful to a regional market than a larger aircraft flying only once or twice a week. That is where Fly91's strategy could have an advantage.

A bigger opportunity for India's smaller airports

If Fly91's expansion succeeds, its impact could go beyond the airline itself. More regional flights can help smaller airports attract passengers and encourage economic activity around them. Better connectivity can make smaller cities more attractive to businesses, tourists and investors. For passengers, it can reduce travel time and make journeys between smaller cities much easier.

This is also closely aligned with India's efforts to expand regional connectivity and bring more people into the country's growing aviation network. ATR has already identified India as an important market for its aircraft, particularly because of the country's large number of regional airports and growing demand for domestic travel. But growth must be sustainable , the 40-aircraft order is an ambitious move, particularly for an airline that has not yet turned an annual profit.

Fly91 is currently debt-free and has raised around $26.3 million, while seeking another $26.3 million to support its expansion. The airline is also in discussions with lessors and financiers to finalise funding for the aircraft order. Chacko expects the airline to reach cash break-even by the end of the current financial year and achieve profit-and-loss break-even a year later. These targets will be important.

Buying aircraft is only the first step. Fly91 will need to ensure that its growing fleet spends as much time as possible flying, while keeping maintenance, fuel, crew and other operating costs under control. The airline already has an eight-year global maintenance agreement with ATR, designed to support its growing fleet.

The bigger picture for Indian aviation

Fly91's order comes at an interesting time for Indian aviation. The country's major airlines are expanding their fleets to meet strong demand on domestic and international routes. But the next stage of growth may require a different approach, one that focuses not only on adding more flights between big cities, but also on connecting the smaller dots on India's aviation map.

This is where the ATR 72-600 could prove particularly valuable.

The aircraft is not intended to replace the A320 or Boeing 737. Instead, it can complement larger jets by serving markets where a narrowbody aircraft may be too large or where airport infrastructure may be limited. For Fly91, that makes the ATR a natural choice for its business model.

The airline is essentially betting that India does not need every city to have a large airport or every route to have a large aircraft. It needs the right aircraft connecting the right cities. The 40-aircraft order is therefore more than a major purchase for Fly91. It is a bet on the idea that India's aviation map can become much wider and deeper.

If the airline can successfully build demand in smaller cities, operate its aircraft efficiently and achieve profitability, the ATR 72-600 could become an important tool in bringing air travel closer to millions of Indians outside the major metropolitan centres. The real test, however, will begin once the aircraft start arriving.

For Fly91, the question is no longer whether India's smaller cities need better connectivity. It is whether the airline can build a profitable network around that need. And for ATR, India's regional aviation ambitions could become one of the most important growth opportunities for the turboprop market.