Paramount may fly away with SpiceJet

New Delhi: Paramount Airways, the Madurai-based full-business class airline, has joined the race for Gurgaon-based low-cost carrier SpiceJet. According to sources, the Madurai-based all-business class airline, the only domestic flier that is making cash profits, is in talks for a possible buyout. Jet Airways and Anil Dhirubhai Ambani Group (ADAG), too, are reportedly eyeing a controlling stake in SpiceJet.
“We are looking at raising Rs 400-crore capital, but the mode has not been decided yet. Nor have we yet appointed an advisory firm,” SpiceJet chief financial officer Partha Sarathi Basu told ET. He, however, declined to comment on the airline being in talks with Paramount Airways or other suitors for a buyout.
When contacted, Paramount Airways managing director M Thiagrajan declined to comment. However, according to company sources, the privately-held airline, whose profitability could not be ascertained, is actively looking at a pan-India presence, including the competitive northern market.
“Acquiring a stake in SpiceJet will help the carrier establish its presence in North India,” said a company insider. “Though it will be premature to say anything at this point, as the airline is evaluating quite a few options,” the source added.
10/06/08 Vishakha Talreja/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Paramount Airways Jun 2008, SpiceJet Jun 2008