Madurai-based Paramount Airways will buy 10 Airbus A321 aircraft for $1.5 billion. The company has placed the order with French aircraft manufactures Airbus for operating flights to the Middle East, Africa and Far Eastern destinations, Paramount managing director M Thiagarajan said. “These overseas destinations will only have first class and business class, a model similar to our domestic operation,” he said. The delivery of first aircraft will be in the fourth quarter of 2010. The European Central Bank is funding Paramount’s fleet expansion plan. “Paramount has signed an agreement to buy 10 aircraft at a list price of $90 million each. The airline has option to buy 10 additional aircraft,” Airbus vice president (sales) Miranda Mills said.
The company’s plan to add 10 more aircraft in its existing fleet of 5 airplanes comes at a time when most of the domestic carriers are deferring their fleet expansion plans due to the current economic slowdown. Paramount currently operates with five 70-seater Embraer jets. Paramount plans to operate flights on international sectors soon. The existing guideline by the government allows an airline to fly overseas only after it completes five years of operation in the domestic market and has a fleet size of at least 20 aircraft.“We would complete five years of operation next year. By then we would also have a fleet size of more than 20 aircraft,” Mr Thiagarajan said.
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