NEWS
Months after its operations were crippled by a legal dispute with aircraft lessors, Chennai-based carrier Paramount Airways will again take to the skies after a government panel cleared its proposal to buy 14 planes and lease six more. At a meeting, the Aircraft Acquisition Committee of the Civil Aviation Ministry cleared a proposal of the airline to acquire eight Airbus A320 and six Bombardier Q400 turboprop aircraft and wet lease six others. The Committee gives clearances to airlines’ proposal for import of aircraft after considering a variety of issues, including availability of slots at airports where they want to operate.

VIEWS
The Chennai-based private airline Paramount Airways with a unique all-business class model was launched in 2005 with two 75-seat Embraer ERJ 170 aircraft soon after the boom in the airline industry in India began. The fleet strength was ultimately enhanced to five aircraft. Paramount Airways was the only carrier in India to operate the Embraer Regional Jets. Initially, the airline was operated at the national level connecting Kochi with Delhi. However, the concept proved unsustainable and soon the airline withdrew into a regional frame providing connectivity amongst cities in South India with flight timings to suit the convenience of the business traveller. With a fare structure pitched between those of the low cost and full service carriers, the airline recorded consistently high load factors and captured 27 per cent of the market share in the southern region. Operating 56 flights a day and virtually as a regional airline, Paramount Airways was reputed for its ontime performance.

By the end of last year, the airline had got entangled into a legal dispute over alleged default in payment with two leasing firms, the UK-based GE Capital Aviation Service Ltd and Celestial Aviation Trading. After a prolonged legal battle both in the UK and India, between the airline and the leasing companies, three of the Embraer Jets were grounded as these were deregistered by the Directorate General of Civil Aviation (DGCA). As the strength of aircraft in the Paramount fleet dropped below the minimum requirement to hold five aircraft, it led to suspension by DGCA of their licence as a scheduled operator.