Paramount Airways woos GoAir for buyout

Mumbai: After Air India-Indian Airlines, Jet Airways-Sahara and Kingfisher-Deccan Aviation, another aviation merger is in the air.
Madurai-based Paramount Airways is interested in acquiring the Mumbai-based budget carrier GoAir, promoted by the Wadia group.
Sources close to the developments said the investment bankers of Paramount Airways have expressed their interest and initiated discussions with GoAir representatives. The talks, however, have not made much headway as yet as GoAir is reluctant to move ahead.
Paramount Airways, which currently operates only in south India, has firmed up plans to enter the western region. GoAir has only four leased aircraft but Paramount is more interested in its slots, parking bays, pilots and other infrastructure, sources said.
GoAir had earlier indicated its plan to dilute 26-40 per cent equity through a private equity placement.
Paramount Airways Managing Director M Thiagarajan was not available for comment, while GoAir chief Jeh Wadia denied any such development.
04/05/07 P R Sanjai/Business Standard

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Categories: GoAir Jun 2007, Paramount Airways Jun 2007