The Hindu Business Line : Paramount orders 15 more Embraers worth $600 m

Bangalore March 23 After topping the market share in the south, Paramount Airways wants to enlarge its footprint as it orders for 15 more Embraers worth $600 million.

The Paramount Airways Managing Director, Mr M. Thiagarajan, told Business Line that the positioning of the airline as a high value carrier will not change even though low-cost carriers have been taking away customers from full service carriers.

Mr Thiagarajan insists that the airline's business model has not failed. Instead, it had made the airline top the southern market with a 24-25 per cent share.

Business model

Paramount's business model ensures that every passenger gets either an aisle or a window seat, has access to a 15-course meal and has at least five hostesses in each of the aircraft. "Our seats are bigger and every passenger gets the benefit of more than what a full service carrier offers," says Mr Thiagarajan.

Mr Thiagarajan is not ready to share numbers but claims that the airline's yields are between 4 and 5 per cent higher than the full service operators while the passenger load factor is at a healthy 85 per cent.

Profitable

He said all his routes, which are more than six months old are profitable. "We are a profitable airline because of our business model," he said.

He said the airline spent a considerable amount of time and money to put together the business model before launching the airline.

By 2011, the airline will have a national footprint but it would still ride on the Embraer fleet, Mr Thiagajaran said. "We will continue to stick to Embraers as they are easier to fly and are profitable too," he said.

ATF sops

The airline has also received a major sop from the recently-announced Union Budget which will save the airline as much as Rs 100 crore annually. As per the new budget proposal, ATF (aviation turbine fuel) concession has been extended to even small aircraft and jets, which weigh less than 40,000 kg. Till now only turbo jets were accorded ATF sops to encourage airlines to fly to smaller cities.

As Paramount is one of the few airlines whose fleet consists of jets which weigh less than 40,000 kg they will get ATF which will attract a mere 4 per cent sales tax instead of tax of between 24 and 32 per cent.

More Stories on : Market Shares | Airlines

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
3M eyes new segments; expands existing facilities

CII delegation for China IPR summit

Advertisers latch on to India-Sri Lanka match

Rani Mukherjee, new face of Dabur Amla

SriLankan promotional offer on Net booking

Silk Air announces special fares

CIBT plans expansion thru franchise route

Paramount orders 15 more Embraers worth $600 m

Aerens Gold Souk Group plans malls

World Cup: Drop in viewership at midnight

ITC Hotels working on arrangement for Sheraton brand use

Esprit expects Rs 75-cr turnover

DaimlerChrysler unveils new editions of Mercedes cars

Mistral offers new storage tool