The Hindu Business Line : Paramount Airways in acquisition talks

New Delhi June 5 Paramount Airways is talking to two airlines for a possible takeover, but the acquisition will take place only by the middle of next year when it starts services in the western region.

Speaking to newspersons in the Capital on Tuesday, Mr M. Thiagarajan, Managing Director, reiterated that the acquisition would be a complete takeover.

"The identity of the acquired airline would be completely merged with the identity of Paramount," he added.

Refusing to divulge the size of the deal, he said that the takeover would be funded through internal accruals.

Paramount plans to operate 3,000 flights a month in the western market, including Maharashtra, Gujarat and Goa.

Its new market would extend up to Bhopal in Madhya Pradesh and Jaipur in Rajasthan.

The company currently operates 1,600 flights a month in South India and enjoys 26 per cent market share.

It has five aircraft and offers only business and first class options.

The airline is also talking to Brazilian aircraft manufacturer, Embraer, for purchasing 40 aircraft for $2 billion.

The delivery of the aircraft would start early next year and go on till 2011. The final deal would be announced in Brazil in July.

"We will start operations in the western market in the middle of next year and become a market leader by the middle of 2009. By the end of 2011, we will have a national presence," said Mr Thiagarajan.

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