Paramount can now acquire more aircraft

Chennai: The Madras high court has stayed the directorate general of civil aviation (DGCA) order suspending the scheduled operator's licence of the Tamil Nadu-based Paramount Airways, clearing the way for the airline to acquire more aircraft.
The interim order, passed by a division bench comprising Justice Elipe Dharma Rao and Justice KK Sasidharan, however, does not give the airline any right to re-commence its flying operations, as it needs to first acquire three more aircraft to keep the mandatory fleet strength at its disposal.
Paramount originally had leased three aircraft from the Celestial Aviation Trading Company. After the company allegedly defaulted in rent payment, Celestial approached the DGCA for de-registering the aircraft. After the de-registration, Paramount was left with only two aircraft. As the company did not have the minimum number of five aircraft, the DGCA cancelled the scheduled operator's permit of the company.
Paramount's reply that it was in the process of importing aircraft and that necessary agreements had already been entered into with the foreign suppliers did not satisfy the DGCA, which suspended the permit on April 16.
Noting that Paramount cannot import aircraft without valid operator's permit, the judges said: "This is nothing but killing an industry employing about 640 employees."
31/10/10 Times of India

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Categories: Paramount Airways Oct 2010