26.6.08

Paramount Airways expands in Turbulent Times

At a time when carriers are cutting routes to reduce losses due to high fuel prices, Madurai-based Paramount Airways, an all-business class airline, plans to add more routes. It will enhance its operations from 62 flights a day to 66 in following weeks. The new routes are Bangalore-Vishakapatnam (non-stop) and Chennai-Vishakapatnam (nonstop), besides Chennai-Tiruchirapalli daily and doubling frequencies of Chennai-Tiruvananthapuram. Paramount Airways was not facing the heat of higher aviation turbine fuel (ATF) as much as other operators were feeling as their operations were better insulated. They are able to increase fares and yet maintain market shares and maintain high loads, which most operators are unable to. For instance, an average Paramount short-haul flight ticket costs Rs 6,000-7000—substantially higher than other operators.
As per the ministry of civil aviation statistics, Paramount recorded the highest seat factor for May 2008, wherein it recorded 81.2%, while Air India (domestic) was at 61.2%, Jet Airways (73.9%), Deccan (71.5%) and Kingfisher was 70.1%. The airline is also getting two new Embraer planes inducted into the fleet. With this, the fleet size will increase to nine. As per the original business drafted, Paramount had plans to enter western India only next year. They are now advancing this to July end or August first week when they would launch operations between Chennai and Pune.

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