Paramount Air to buy out Wadias in GoAir

Chennai, Mumbai/New Delhi: In a new twist to the ongoing airline consolidation story, Chennai-based Paramount Airways said it wants to buy out promoters Wadias in GoAir. Wadias, the promoters of textile giant Bombay Dyeing, had reportedly offered 40% to 60% stake in low-cost carrier GoAir to the promoters of Paramount Airways. "A complete buy-out will make the difference rather than owning partially," sources said. However, speaking to FE, Jeh Wadia, managing director, GoAir said, “Neither have officials of Paramount Airways approached me nor have I talked to them on these lines. We have been considering options of private placement and are in talks with some strategic players. In the near future, I do not see GoAir offering any stakes to the airline whatsoever.” He ridiculed rumours about GoAir divesting 40% equity in favour of the Chennai-headquartered premium service carrier.
Paramount Airways, which is planning to enter the western market in 2008, is keen on acquiring an airline, especially with a strong presence in western India, Paramount Airways MD M Thiagarajan said on Tuesday. Paramount is also placing orders for 40 Embraer - 175 extended range aircraft at a list price of $2 billion. The formal announcement for the purchase order will be made in Brazil in July this year. The acquisition would be funded internally, Thiagarajan said.
06/06/07 R Ravichandran, Shaheen Mansuri/Financial Express

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Categories: GoAir Jun 2007, Paramount Airways Jun 2007