Paramount air to take off in April

At a time when the aviation industry is going through turbulent times, grounded Chennai-based carrier Paramount Airways is all set to take to the skies in April, industry sources told Express on Wednesday.

Paramount Airways, promoted by M Thiagarajan, lost its licence in 2010 when the aviation regulator Directorate-General of Civil Aviation (DGCA) grounded it for failing to maintain the mandatory five aircraft in its fleet. Industry sources say that Paramount Airways is first looking to restore its southern network, where it earlier occupied 26% market share. The carrier plans to eventually go national with its services.

Sources add that the company management met the Aviation Minister Ajit Singh and DGCA officials in the capital on Wednesday. The officials are learnt to have discussed the carrier’s plans to restart operations early next fiscal.

Paramount Airways recently won a lawsuit at a British court worth `1,650 crore. The dispute was over a lease agreement payment with GE Capital Aviation Services and Celestial Aviation Trading. In 2010, Paramount was flying only one aircraft, with three planes getting de-registered due to default in payment.

Meanwhile, Paramount was in talks with several foreign carriers for Foreign Direct Investment (FDI). This newspaper has learnt that while Paramount Airways was speaking to Etihad Air ways, Air Asia, Lion Air and Qatar Airways among others, it is unclear whether it would go in for FDI or FIIs ahead of its launch.

“The company is very cash-rich, something that is uncommon nowadays in the aviation industry. While the situation is fluid, it is unlikely that the carrier would go in for FDI ahead of the launch. Any FDI, and the quantum of it, will be looked at post the April-launch,” an official said.

Paramount Airways will start its second stint with six aircraft and hopes to fly at least 60 flights a day. The airlines will initially operate using French small aircraft, ATR turbo-props, and subsequently move to jets. Paramount Airways is expected to stick to providing cost-effective business class travel.