PIA Chairman and CEO Tariq Kirmani and ATR CEO Filippo Bagnato signed the agreement in the presence of Consul General of France and Italy.
The aircraft will replace PIA's old F-27 aircraft fleet operated on socio-economic routes.
The 7 firm 48 seat aircraft are scheduled to be delivered between 2006 and 2007 with delivery of first aircraft to PIA in May 2006. The total value of the contract is approximately $100 million.
Tariq Kirmani said, "PIA carried out an in-depth evaluation of all aircraft available in this turbo prop aircraft category. Demo flight were also conducted during the evaluation, the aircraft were gauged on various performance attributes for instance, passenger appeal and comfort, aircraft maintainability, operational durability and economics. PIA selected ATR42-500 aircraft as it is best suited these parameters."
ATR CEO Filippo Bagnato said, "PIA is a second new customer to chose our aircraft this year. Once again, this commercial success is evidence of the strong resurgence of the turbo prop aircraft in the regional aviation market. I am very proud of the decision in favour of ATR. ATR42-500 offers a combination of exceptional overall performance and comfort unmatched in its class. It has outstanding performance when operating from hot and high and short runways, while maintaining the operating economics and reliability.
This 48-seater aircraft has a specially designed low noise cabin interior providing maximum comfort to the passengers.
ATR42-500 aircraft are equipped with the Multi-Purpose Computer (MPC) and complies with the latest navigation requirements such as Precision Are Navigation (P-RNAV). Since the beginning of the programme, ATR has sold 738 aircraft (398 ATR42s and 360 ATR72s). ATR42-500 aircraft are operated by several airlines around the globe substantiating its triumph as market leader among other turbo prop aircraft.
The purchase of seven turbo prop aircraft from ATR would further strengthen Pakistan's economic ties with France and Italy, in particular, and with the European Union, in general, for years to come.