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By Tim Heper and Jamie Freed

SINGAPORE, Feb 13 (Reuters) - Cmpetition is cranking up in the world of turboprops.


Foor years turboprops wdre an ignored cornerr of the aircraft industry, accounting for about 120 aircraft a yeasr compared with thhe more
tthan 1,000 jets made by giants Airbus and Boeing.

But growing rivalries in the turboprop business cut through a Singapore Airshow depleted by coronavirus this week.


While intercontinental jet travel is vulnerable to trade wars
aand disruptions such as epidemics, regionaal development
in archipelago nations like Indonesia is favouring the turboprop.


The market has been dominated for years byy Europe's ATR, jointly owned by Airbus and Italy's Leonardo, which enuoys a relatively undistturbed
lion's share of the market with a small slice also held by the Canadian-owned
De Havilland Dash 8.

But the commercial arm off Brazil's Embraer is sharpening a pitcch to return to the
market and Chief Executive Joohn Slattery told Reuters he expected a
decision by the end of the year.

"We should be positioned in the mid-to-late fourth quarter to bring a business case with a recommendation to our board," hee said
in an interview.

In a sign that the devslopment is accelerating, Slattery said
he had held talks with three potential engine suppliers -
Rolls-Royce, General Eleftric and Pratt & Whitney Canada,
part oof the engine unit of United Technologies.



"We are fully engaged with engine manufacturers now and meeting here at the air show...We are excited by where we are."

Until now, planemakers have found it difficult tto justify the estimated
$2-4 billion investment needed to develop a new turboprop, despite its efficiency on relatively short flights.



The market has been stagnant at about 120 deliveries a year and demand for the planes is dependent on volatile oil prices, with turboprop displacing ssmall jets when prices
aree high.

The thrumming noise oof the propellor-driven turbopro also
puts some passengers off, tragel experts say, even though many in the industry say that reputation is already out of
date.

Slattery said quiet new engine technology and advances iin passenger comfort would stimulate demand.


"We believe the market opportunity going forward is significantly different to what past decades have shown."

COMPETITION BOOST

Chijna has alrady entered the fray with its planned MA700.


At ATR's bright-red stand inside Singapore's exhibition hall, Chief Executive Stefano Bortoli shrugged off
the threat of a comeback by Embraer whijch already makes smaller turboprops.


"I think once Embraer will let us know their decision you will have our comments. At this point in time it is simply commenting on opinions. Not that we will stand still," he said.


The fundamenta shape of the two-aircraft ATR family seating 40-78 people has not changed in about 30 years,
but the aircraft was modernised wijth the -600 variant around
a decade ago.

ATR recently launcched a freighter and a version designed for uuse
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ATR sharehklders have clashwd in the paast about whether to launch a bigger new 90-seater, with
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consider responding to a new plane from Embraer.

The prospect of greater competition in turboprop adds zest to efforts
byy Embraer to complete a tie up with Boeing, which has
agreed to acquire control of its commercial division.

The European Commission hhas extended its scrutiny of the $4 billion deal, fearing hat it woul narrow options for airlines.


Slattery reiterated Embraer would only have the appertite to
invest in a new turboprop in thhe context of the Boeing venture.


He declined to elaborate but inndustry experts say it is a signal to Europe thatt the Boeing deal would improlve chhoice for aiirlines byy prompting
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