Paramount Airways to expand operations

Private carrier Paramount Airways, which has a strong presence in south India, would enter the western Indian skies by the end of 2007 and add 15 more aircraft to its kitty in next three years. Paramount's Managing Director M Thiagarajan said that the airline would try to provide maximum number of services across the cities in the western region. However, he did not divulge the names of the cities the airline would serve in the region. "By early 2010, we will have a national presence," he added. Paramount will induct 15 more Brazilian made 70-seater Embraer 170/175 and 110-seater Embraer 195 aircraft in phases within the next 36 months, he said. The carrier already owns five Embraer 170/175 aircraft and connects eight destinations in South India through 50 daily flights.Though a newcomer in the aviation sector, the airliner carries an average 100 tonnes of cargo daily, he said. Paramount will also launch its services to Tiruchirapalli in Tamil Nadu and Kozhikode in Kerala soon.

The Embraer aircraft with "lower maintenance costs, greater speed and lesser fuel consumption," contribute in cutting flying costs, he claimed. On the high Air Turbine Fuel (ATF) prices in India, he said that the taxes on the fuel should be rationalised. "The sales tax varied from one state to the other from 23-30 per cent. The customs and excise duties were also higher," he said. "Despite India being an ATF surplus country, the prices are much higher compared to international prices and the fuel expenses account to over 30 per cent of the total flying costs," he said. The Federation of Indian Airlines, an association of domestic carriers, has asked the Civil Aviation Ministry to lower the taxes on ATF. "If the tax rates come down, we will be able to lower our ticket charges from 15 to 20 per cent," he added. Apart from rationalisation of tax, he also wanted the coming Union Budget to provide continuation of witholding taxes on lease payments of aircraft. Paramount Airways is promoted by the Paramount Group, a leading textile manufacturer based in Madurai.

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