NEWS
Paramount Airways said on March 19 that three of its aircraft have been grounded at Chennai airport, as the Directorate General of Civil Aviation (DGCA) has instructed the Air Traffic Control at Chennai airport not to allow the aircraft to take off. The airline made arrangements with other airlines to accommodate the passengers booked on cancelled Paramount flights. The spokesman stressed that there was no court order in this regard but only a DGCA notification. Delhi High Court dismissed the petition by Paramount against DGCA’s notification for de-registering the three aircraft. The airline is expected to go on appeal against this. The DGCA had de-registered three 72-75 seater Embraer planes of Paramount Airways in relation to a lease payment dispute with GE Capital Aviation Services Ltd and Celestial Aviation Trading.

VIEWS
Chennai based Paramount Airways which was launched four and a half years ago, operates 72 flights daily to cover 16 destinations across the nation. It has on its inventory five Embraer regional jets and has been providing full business class travel at a cost only marginally higher than economy class available on the Indian low cost carriers. The business model of the airline is unique and is tailored to meet the needs of specifically the business traveller. Though operating as a Regional Carrier, the airline has aspirations for a national footprint in not too distant a future.

In September 2009, the UK based GE Capital Aviation Services (GECAS) and Celestial Aviation Trading from whom three aircraft have been leased, charged the airline with default in lease payments. The quantum of dues as reported varies between $215,540 (Rs 97 lakh) and $10 million (Rs 45 crore), the precise figure remains unclear. This is the second time GECAS has acted in this manner, the first was in 2009 against another full service Indian carrier for a similar default.

In response to the complaint by GECAS, the DGCA issued an order dated December 4, 2009 to deregister three aircraft of Paramount Airways bearing Tail Numbers VT-PAE, VT-PAD and VT-PAF. Apparently, this was because of an ongoing dispute between the parties concerned and according to the MD & CEO of Paramount Airways, M Thiagarajan; the airline had filed a case in the High Court (HC) in London in which it had received a verdict in its favour. The airline also claims to have made a deposit of $15 million (Rs 68 crore) with GECAS.

In December 2009, while disposing of the appeal by Paramount Airways, the Delhi High Court provided temporary relief to the petitioner and issued a stay order directing the DGCA “to set aside the deregistration and re-register the three aircraft”. Although the airline resumed normal operations two days later, the finances of the airline had taken a hit.