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Feb 26, 2013, 05.11 PM IST | Source: CNBC-TV18

Lenders ask Paramount Air to repay dues before resuming ops

CNBC-TV18 learns that Paramount Airways has hit a wall as far as re-starting operations are concerned as lenders want their dues repaid first and have approached the regulator, Director General of Civil Aviation (DGCA) for the same.

Madurai-based Paramount Airways' plans to re-start services has hit a road block as its. lenders want their dues repaid before it takes to skies, say CNBC-TV18 sources.These lenders have approached the  Directorate General of Civil Aviation (DGCA) for the purpose.

According to government sources, Paramount has applied to the regulator to restart operations, but no call has been taken on it.

In 2010, the airline stopped operations after the DGCA de-registered its aircraft following a dispute it had with aircraft lessors over non-payment of lease rentals.

However, late last year, the airline was given Rs 1600 as compensation through an international arbitration after which the regulator renewed its licence.

There are media reports suggesting that the airline has started recruitments in various categories and is also keen to get expand to more cities in south India after getting flying licence.

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