Paramount may tie up with two foreign airlines to fly overseas

Mumbai: Chennai-based Paramount Airways is likely to form tie-ups with two foreign airlines in order to attain the required size to fly abroad.
The move will also help Paramount to offer an integrated service to international travellers visiting India.
According to the present regulations, airlines need to complete five years in the domestic market and also have a minimum fleet size of 20 aircraft to be eligible to fly in international routes.
Paramount is currently talking to four airlines, including Singapore Airlines, Lufthansa, Qatar and Thai Airways, and expects to close a deal in the current quarter, sources close to the development said.When contacted, Paramount Airways managing director M Thiagarajan confirmed that the carrier was talking to a few foreign airlines but declined to give further details.
The load factor for most airlines has come down by 25% due to the economic slow-down. Airlines are now analysing different models to increase passenger traffic. Para-mount Airways is the market leader with 26% share in south India and reported a 45% increase in passenger traffic in January compared with last year.
Analysts said this kind of arrangement would indirectly help domestic carriers that are yet to fly international. Numerous international travellers and NRIs come to Mumbai, or Delhi, through international airlines and thereafter rearrange their journey to local destinations.
18/02/09 Mithun Roy/Economic Times

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Categories: Foreign Feb 2009, New Feb 2009, Paramount Airways Feb 2009