Paramount may buy 8 turboprop planes for up to $250 million

Mumbai: Chennai-based full business class airline Paramount Airways Ltd could be the only Indian carrier to place orders for planes at the five-day Dubai Air Show that ends on 19 November. The airline plans to sign an agreement to buy at least eight turboprop planes at an estimated cost of $230-250 million (around Rs1,070-1,163 crore).
Turboprop planes are manufactured by Canada’s Bombardier Inc. and Airbus SAS subsidiary ATR.
These small planes, with seat capacity ranging from 40 to 70, will be deployed to connect smaller cities such as Cooch Behar (West Bengal), Agatti (Lakshadweep Islands), Salem and Tuticorin (both in Tamil Nadu). Bigger planes in Paramount’s fleet, including five Embraer aircraft made by Brazil’s Empresa Brasileira de Aeronáutica SA, cannot land on the airport runways in these cities.
“The carrier is evaluating options between Bombardier’s Q400 and ATR’s 600 series of turbo planes. Initially we would be leasing eight turbo planes and (they) would be later replaced with new ones. The new planes would join the airline’s fleet between January and May,” said a senior Paramount Airways executive, who didn’t want to be named.
“These planes will be having all business class configuration like the existing Embraer planes. The funding for these planes would be done with the help of European credit agencies,” the executive added.
If bought, Paramount Airways will have two types of aircraft in its fleet. “We have no plans to phase out Embraers. The reason behind opting (for) turboprops is because certain smaller markets demand smaller planes and there are operational restrictions at these smaller airports,” said the second airline executive cited earlier.
With five planes, Paramount Airways, which was launched in October 2005, flies to 16 destinations across India and operates 72 flights daily, carrying 3,600 passengers. According to DGCA, the carrier had a 1.5% market share in October.
15/11/09 P.R. Sanjai/Live Mint

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Categories: Dubai Airshow 2009, New Nov 2009, Paramount Airways Nov 2009