Paramount Air in expansion mode

New Delhi: At a time when big players like Jet Airways and Kingfisher are reducing frequency and cutting costs aggressively to stay afloat, the south-based Paramount Airways is quietly expanding into the western region. It is also introducing a series of valued-added features including in-flight shopping, a frequent-flier programme that promises to be a lifestyle product, concierge services and gifts for passengers.
The strategy adopted by Paramount is in contrast to other airlines, many of whom are cutting down even in-flight catering costs. Paramount Airways, which had so far restricted its services to the south, is planning to add Pune to its network this month. The airline’s managing director M Thiagarajan said that Pune would be the third point in the western region to be connected by Paramount.
The airline has already launched flights to Ahmedabad and Goa.The airline also plans to add more aircraft and capacity on routes like Chennai-Tiruchi as demand continues to grow.
Paramount’s move to add capacity and frequency when others are cutting costs is similar to its business model. While the low-cost trend was picking up, the airline launched operations with only business and first class, sticking to the top-end. At the same time, the carrier went for steady growth rather than rapid expansion.
The Paramount management feels that steady growth has enabled it to weather the turbulence that many airlines are facing now due to huge losses triggered by huge expansion within a short period. The focus of the airline is likely to be on bottomline and cash flows rather than pushing only for topline growth.
Paramount connects the southern region extensively with flights to Hyderabad, Bangalore, Chennai, Thiruvananthapuram, Kochi, Visakhapatnam, Coimbatore, Madurai and Tiruchi. The airline’s first expansion outside the region has taken it to Ahmedabad, Goa and Pune.
07/11/08 G Ganapathy Subramaniam/Economic Times

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Categories: Paramount Airways Nov 2008