Published on Tue, Jun 19, 2007 at 19:58 | Source : Moneycontrol.com
Updated at Wed, Jun 20, 2007 at 09:11
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Paramount wants to fly north
Paramount Airways, as reported yesterday, is apparently looking for acquisitions to fuel its growth plans. Although it operates only in South India, Paramount wants to fly all over India, and fast.
Paramount Airways, as reported yesterday, is apparently looking for acquisitions to fuel its growth plans. Although it operates only in South India, Paramount wants to fly all over India, and fast.
The brainchild of Madurai-based M Thiagarajan, Paramount Airways took off 18 months ago to cater only to business and first-class travellers.
It flies Brazilian Embraer jets instead of Airbuses or Boeings that other Indian carriers use. The Embraers use far less fuel than Boeings and Airbuses. And with fuel being the biggest cost for an airline, that is a huge saving.
Also, with a capacity of only about 70 passengers, the business traveler has helped the airline to not only break even, but also make money. That is when most other carriers are losing money.Paramount operates in South India and commands 26% of the market in the region.
The airline has five aircraft and wants to add two more by the end of the year, and 40 more by 2010 at a cost of USD 2 billion.
If Paramount buys out Go Air, it will use the new Embraers to fly on Go Air's pan-India routes, catering to high-end travelers. Spice Jet, meanwhile, will continue to operate as a low-cost carrier.
