Naresh Goyal, the Chmn of Jet Airways(9W), India's largest pvt airline has announced that they would be going in for small 30-50 seat Regional jets.
9W business model was orig.based on a all B737 fleet, like SouthWest of the US. However, unlike the US low-fare major, 9W concentrates on high-fare business class travellers.
Recently, 9W went in for regional services using the ATR-72, configured as 66 seaters. There are around 5 of these flying. However, Indians as a rule prefer jet aircraft even for shorter routes.
(Why else would A320's and 737s be used on 15 minute hops like PNQ-BOM?)
So the original plan of going in for ATR-42/72's produced locally under licence seems to have been given the go by. Instead 9W would now be looking at Dornier 328/528 family or the Emb 135/145's.
Meanwhile, 9W would be receiving 10 737-800/900 series acft over the next year. It had ordered these acft a long time back. but delivery was delayed to the sanctions imposed by the US govt after India conducted nuclear tests in 1998. The ExIm Bank of the US finally backed the loan, after which deliveries could commence.