The Hindu Business Line : Paramount drops acquisition plan; to focus on expansion

New Delhi, Feb. 27 The Madurai-based Paramount Airways has dropped plans of acquiring a low-cost airline and instead plans to concentrate on induction of wide body aircraft and expansion into the international market.

The airline’s Managing Director, Mr M. Thiagarajan, told Business Line that the plans of acquiring an airline had been dropped as the business model of running a low-cost airline and the one followed by Paramount Airways were “diametrically opposite.”

For close to seven months, Paramount Airways had been examining a proposal to pick up a stake in an existing airline in which the South-based airline had the option of becoming a strategic financial investor.

While officials were not forthcoming on the name of the airline in which Paramount was looking to pick up a stake, sources indicated that they had been in talks with the Delhi-based SpiceJet Airlines.

“There is no need to acquire another airline as work on development of Delhi and Mumbai airports are on going at a fast pace. Besides, the airline’s plans for going international are taking shape and an announcement on the wide body aircraft that we will induct is to be made in the next 10 days,” Mr Thiagarajan said.

The airline which started operations in 2005 will be eligible for operating abroad in 2010.

Paramount is in talks with both Boeing and Airbus and is evaluating the Airbus A330 and Airbus A350 as also the Boeing 777 and 787 aircraft.

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