New Delhi: Having placed orders for 40 Embraer aircraft, at a list price of $2 billion, Chennai-based Paramount Airways is now looking at deepening its relationship with the Brazilian aerospace major by linking up with it to set up a maintenance, repairs, overhaul (MRO) and a pilot training facility in the country.
According to Paramount Airways managing director, M Thiagarajan, talks with the Brazilian company were on, and a decision in this regard was expected anytime over the next couple of months.
With a 24-26% market share in the south of the country, Paramount Airways is now looking at establishing a pan-India presence by 2011 with a fleet size of 55-60 aircraft. As per its stated plan, this premium service provider would step into the country's western region first, before entering markets in the north, east and the northeast in phases over the next couple of years
According to Thiagarajan, the group would seek acquisitions in each region to ramp up its operations. "Otherwise, we will simply go ahead and start our operations in that market on our own," he added. Paramount's expansion plans would be financed through borrowings from financial institutions and its own internal resources.
Thiagarajan said unlike others Paramount followed a niche full-service value carrier model. He pointed out that the carrier's average yields, even on short haul routes, were one of the highest in the industry, pegged at around Rs4,000 per passenger.
He said that Paramount had consciously focused on yields, instead of hankering for market share. In this regard he mentioned that Paramount's operations had already broken even.