Turboprops on the comeback trail

By Rhys Jones and Sarah Marsh

FARNBOROUGH (Reuters) - Turboprops, propeller-driven planes shunned for being slow and noisy, are enjoying a renaissance as airlines seek more efficient short-haul aircraft to counter soaring fuel prices.

Generally used on flights lasting up to four hours and carrying an average of 70 passengers, turboprops were consigned to history by most airlines years ago.

However, as operators struggle to maintain profitability, the propeller-driven planes, which typically burn around 25 percent less fuel than similar-sized jets, have seen a resurgence in demand.

"With a slowing economy, high pressure on airlines' costs and rocketing fuel prices, there is strong growth potential in the regional market," said Stephane Mayer, chief executive of French-Italian regional turboprop manufacturer Avions de Transport Regional (ATR), at a Farnborough Airshow briefing.

Toulouse-based ATR, the world leader in the 74-seat prop market, shrugged off the current tough economic climate to estimate regional airline passenger traffic will grow an average 8 percent annually for the next 20 years.

ATR, a joint venture between Italy's Finmeccanica (SIFI.MI) and EADS (EAD.PA), has seen a 63 percent increase in demand over the past year and has a record order backlog of $1.3 billion (650 million pounds).

With demand clearly growing, ATR, which makes the 46-50 passenger ATR 42 and 68-74 seat ATR 72 regional turboprop aircraft, is now considering producing a new 90-100 seat plane, having ruled out stretching the ATR 72.

Without offering a timeframe for production or going into specifics, Mayer said the larger capacity ATR would be similar to the new ATR 72-600 due to enter service in 2010, but with a lighter airframe, lower emissions and greater comfort compared to similar turboprops and jets.