Supreme Court denies relief to Paramount Airways

The Supreme Court on Tuesday denied relief to Paramount Airways whose three planes out of a functional fleet of four have been grounded by the civil aviation regulator DGCA following dispute with its lessor.
A bench comprising Chief Justice K.G. Balakrishnan and Justices Deepak Verma and B.S. Chauhan declined the plea of the airlines to stay the DGCA order de-registering the three planes it had taken on lease from GE Capital Aviation Service Ltd (GECAS).
“You pay some money to them (lessor)... you will make money from flying those aircraft,” the court said.
During the proceedings, senior advocate Abhishek Manu Singhvi, appearing for Paramount, requested the court to allow it to fly the three grounded planes till the next date of hearing.
“As per the Delhi High Court order, DGCA would hear us tomorrow and would pass an order by Monday. Till that period allow us to fly,” he submitted adding that airlines had 27 per cent market share in South India and its passengers were suffering.
However, it was opposed by senior advocate Harish Salve appearing for the U.K.-based GECAS and Celestial Aviation Trading saying that they have terminated their agreement in October last year and since then Paramount is having all the three aircraft in its possession.
“Every hour an aircraft flies it goes from my own pocket as a life of an aircraft is measured by its flying hours,” Salve said adding that they also have to bear the maintenance cost.
The court listed the matter for Friday.
23/03/10 PTI/The Hindu

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Categories: Paramount Airways Mar 2010