Paramount in talks with Airbus, Boeing

New Delhi: At a time when airlines are struggling to survive the ongoing financial crisis, Chennai-based Paramount Airways is busy firming up major plans for its international foray in 2011. The airline is in talks with both Airbus and Boeing for their most advanced upcoming aircraft — A-350 and B-787 Dreamliner. The aircraft majors have already sent proposals for their aircraft, with the Dreamliner expected to be in operation by 2011 and the A-350 a couple of years later.
“We are making our international route strategy. We’ll use a version of Embraer (the aircraft paramount uses currently) for short haul flights and weighing the option of the Dreamliner and A-350 for all other international routes,” Paramount MD M Thiagarajan told TOI.
Interestingly, unlike all other Indian airlines the deep-pocketed ownership of Paramount is not looking at the option of divesting stake to fund its well over $2-billion capex plan for next three years. The airline currently has a fleet of five Embraers and will get four more this year.
Then 30 more planes will join over next three years. Given a list price of nearly $40 million per plane, the aircraft acquisition alone is in range of $1.5-2 billion. “Divesting is not on the cards. The aircraft acquisition will be met by internal accruals and innovative funding options available to us like financial leases and the Exim Bank,” Thiagarajan said.
In addition, the airline is all set to launch its first maintenance, repair and overhaul (MRO) for Embraer aircraft in India by the year-end at a cost of nearly $35-40 million.
06/10/08 Saurabh Sinha/Times of India

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

Categories: Paramount Airways Oct 2008