Paramount in talks to buy GoAir: Report

New Delhi: Chennai-based Paramount Airways is looking to acquire GoAir, the budget carrier promoted by the Wadia Group, in a cash and stock deal, a business news channel reported today quoting sources close to the development.
It said Paramount will pay Rs 100-150 crore to the Wadias in cash. The Wadias may also get a stake of 7 to 8 per cent in the Paramount Group. An announcement will be made shortly, it added.
Go Air, however, refuted reports that the airline was in discussions with Paramount Airways for a possible merger. “In the light of recent speculative press reports, GoAir refutes any contact with Paramount Airlines and refuses to comment on market speculation,” said a statement released by the airline. The Paramount Airways brass was not available for comment.
The report said that GoAir has a debt of Rs 400 crore on its books. The airline has a market share of 5.7 per cent. Paramount Airways, the country’s first all-business class airline, operates predominantly in the South and has a market share of 2 per cent.
04/10/09 Business Standard

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Categories: GoAir Oct 2009, Paramount Airways Oct 2009