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Paramount to resume services next month
MUMBAI: After being grounded for
over three months, the Chennai-based business
class airline Paramount will resume operations
on its entire 19-station network, the airline’s
promoter and managing director , M Thiagarajan
told news agencies The airline was grounded
after a legal dispute with Brazilian aircraft
manufacturer, Embraer , over payment issues
which led to its license being suspended by the
civil aviation regulator. The Chennai High Court
recently passed a judgment in favour of
Paramount. The court ordered the directorate of
civil aviation (DGCA), to lift its suspension of
Paramount’s license, according to Mr Thiagarajan.
The airline will be able to start operations as
it has got permission from the empowered
committee of the civil aviation ministry, on
Wednesday, to take six aircraft — three Boeing
737-800s and three Airbus A320s — on a so-called
wet lease from two Turkish carriers. The
committee also gave approval to the airline to
import eight A320s and six Bombardier Q400
aircraft type. “Getting the wet-lease
aircraft (where the cabin crew and maintenance
services are provided by the leasing airline) is
a quick-fix to resume operations fast,” Mr
Thiagarajan said. The lease agreement entered
with Turkish carriers is for six months, he
said.
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Paramount, before being grounded,
was operating 56 flights a day within south
India. The airline was the leader in the market
in which it had a 27% market share. Mr
Thiagarajan, however refused to give any
financials for the leases and aircraft purchases
to be carried out by his airline. The civil
aviation ministry’s aircraft acquisition
committee had in July, given in-principle
approval to Paramount to import 22 aircraft.
As far as the business model of the airline is
concerned, Paramount will not be able to
reconfigure the aircraft according to its
business class airline specifications, but Mr
Thiagarajan maintained that his model would be
what he described as a “hybrid between higher
economy and low business class fares.”
Paramount, an unlisted entity, reportedly made a
profit of Rs 7.25 crore in the financial year
2010. The airliner had planned entry into
regions beyond South India , specifically Mumbai
and Gujarat, before it ran into trouble.
