Paramount refuses to dilute its profits

Thiagrajan, CEO, Paramount Airways, is riding high. However, some say that his airline is only riding high as it refuses to leave its personal turf. Customers have come back with equanimity. They have posted positive as well as negative feedback. That is to be expected as most of the components of service from an airline is not dependent on the airline itself but on the airports and the general infrastructure condition of the city the airport is in.
Well, Paramount has fared better than other airlines as it has never outrightly been decried and vilified like other airlines in India. However, its refusal to move out of the Southern sector seems to mystify trade pundits across the country.
Is Paramount not willing to dilute its profitability as it knows that the competition in the rest of the country will be severe if it moves out to the oft traveled patch as in Delhi-Mumbai (read busiest sector) and the Delhi-Bangalore (read not very much behind sector). Or is Paramount not willing to take on the extra operational costs or risks?
It could be anything but it could also be a strategy to gain a more and more secure foothold while other airlines fight and bleed each other out in the North. Meanwhile, Paramount continues unabated as one of the most preferred airlines in the country.
08/06/08 Debasish Roy/Economic Times

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Categories: Paramount Airways Jun 2008