Airliners-India

karatecatman

Sent by email
June 19, 2009

PARIS -(Dow Jones)- India-based Paramount Airways has signed a memorandum of understanding to buy 10 Airbus A321 aircraft with an option for an additional 10, European aircraft maker Airbus said Friday.
The agreement was concluded at the 48th Le Bourget air show outside Paris.
With the new aircraft, Paramount Airways will launch international services from South India.
The A321 planes are part of the A320 single-aisle aircraft family, which also includes the A318, A319 and A320.
Airbus is a unit of European Aeronautics Defence and Space NV Co (EAD.FR).
Company Web site: www.airbus.com

***
www.forbes.com/feeds/ap/2009/06/19/ap6563719.html
Airbus to sell 10 A321 jets to Paramount Airways
Associated Press
06.19.09

LE BOURGET, France -- European jet maker Airbus said Friday it has agreed to sell 10 A321 planes to Indian airline Paramount Airways.

The memorandum of understanding signed with Paramount also includes an option for an additional 10 of the single-aisle, short-to medium-range passenger jets, Airbus said in a statement.

Each A321 has a list price of $90.3 million.

The deal was signed on the fifth day of the 48th Le Bourget air show near Paris, the first day that the event was opened to the general public. Organizers expect around 150,000 visitors to the event, the world's largest, which opened to press and professionals on Monday.

Airbus has remained ahead of archrival Boeing ( BA - news - people ) Co. in the hunt for orders throughout the Paris Air Show, with the US jet maker's only order so far this week a $153 million deal at list prices paling beside the $6.25 billion in firm orders chalked up through Thursday by Airbus.

On Thursday, Airbus and Hungary's budget carrier Wizz Air signed a memorandum of understanding for 50 A320 single-aisle passenger jets worth a total of $3.8 billion at list prices.

Airbus' Chief Operating Officer John Leahy said he expects that deal to become a firm order very shortly.

Far fewer deals have been signed than years past, as airlines and governments strapped for cash and credit appeared to have come to the air show mostly as tourists instead of buyers this year, admiring the high-tech hardware but hiding their checkbooks.

Boeing shrugged off the Airbus announcements, saying the company doesn't save up orders to announce at air shows.
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Spiderguy252 · Posted: Fri Jun 19, 2009 2:33 pm Post subject:

A321s would be perfect for Paramount, to operate to S.E. Asia as well as the Gulf. Very good choice!
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haree · Posted: Fri Jun 19, 2009 3:13 pm Post subject:

I hope its not one of the usual Paramount news.

HAWK21M · Posted: Fri Jun 19, 2009 3:34 pm Post subject:

karatecatman · Posted: Fri Jun 19, 2009 3:49 pm Post subject:

Kabir · Member Joined: 24 Oct 2008 Posts: 319 Location: DEL

yea i got an email from Paramount..good news for them. 321 is a good choice.
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shivendrashukla · Posted: Fri Jun 19, 2009 4:36 pm Post subject:

When will the deliveries begin? Also will these be in all biz class as existing E jets are?

Cheers
shivendra

karatecatman · Posted: Fri Jun 19, 2009 11:46 pm Post subject:

Paramount may opt for single class 150 seats. Reports are that it may be a cross between Y and J class type seats.

Paramount chief has also said he doesnt want to repeat teh same mistake of opting for large widebodies and seeing his money burn, which is why he wants to repeat his Embraer success story with a slightly larger jet.
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behramjee · Posted: Sat Jun 20, 2009 2:00 am Post subject:

A 321s are a perfect fit for launching new flights to SIN, KUL, CMB, BKK, DXB, AUH, KWI and MCT from Paramount's MAA hub.

They will most likely use them on MAA-BOM and MAA-DEL bound flights as well.
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karatecatman · Posted: Sat Jun 20, 2009 12:05 pm Post subject:

Paramount says that the aircraft will be 2-class: lie-flat seaters in F and and an enhanced J. Total - 150 seats.
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Spiderguy252 · Posted: Sat Jun 20, 2009 3:38 pm Post subject:

tayaramecanici · Member Joined: 03 Jan 2007 Posts: 438

PlaneLover · Member Joined: 03 Aug 2007 Posts: 150

Aren't the new routes planned by Paramount saturated already?

andrew · Member Joined: 24 Apr 2007 Posts: 187

haree · Posted: Tue Jun 23, 2009 11:38 am Post subject:

Jus pondering...

Paramount started operations in October 2005..

As per the current norms it cannot start intl ops atleast until oct 2010.

Paramount currently has a fleet of 5 ERJs PLUS 10 A321s on 'order'

Again they cannot start international ops until they have a fleet of 20 Aircrafts

I dont seem to get any sense on "Ordering A321s to start international operations" anywhere!

Haree

Nimish · Posted: Tue Jun 23, 2009 12:27 pm Post subject:

nadarji · Member Joined: 11 Jan 2007 Posts: 84

Dont they have a bunch of E170/190s on order too? I think the media reported their initial order for E jets at around 15 or 20.

Can the E-Jets make it to Kuala Laumpur from TRZ/Madurai etc?

iah87 · Member Joined: 17 Apr 2007 Posts: 547

Spiderguy252 · Posted: Tue Jun 23, 2009 7:19 pm Post subject:

tayaramecanici · Member Joined: 03 Jan 2007 Posts: 438

nadarji · Member Joined: 11 Jan 2007 Posts: 84

Paramount might just get it right - they never went for a big order, and after realizing that long thin routes might not work out till they are better known - they started off with CJB-COK-DEL - they have concentrated on a kind of hub -MAA strategy, which seems to be working for them.

They could start serving smaller south east markets from MAA, and maybe the larger ones - SIN, and KualaLumpur from CJB, TRZ, Madurai, COK, TRV etc with E-Jets.

If any of the bigger carriers that fly international had ordered E-Jets instead of 320s and 737s, they could have flown AMD-SHJ, BOM-MLE and similar routes successfully. Just my take

tayaramecanici · Member Joined: 03 Jan 2007 Posts: 438

amd_flyer · Member Joined: 24 Jun 2007 Posts: 37 Location: AMD

andrew · Member Joined: 24 Apr 2007 Posts: 187

I've flown them a few time. GOrgeous little airline with wonderful attitude. But ruthless in the way they cancel flights when they're not 50%+ full. So my view of them is "great, when they fly" (insteal of - Great Way To Fly).

They used to have a proud South Indian ethic (Greeting "Wannakam" at the door and playing South Indian music)... now as they go national, they are sadly loosing that flavour, which is unfortunate as they will get lost in the noise of all the other National Carriers.

I agree I think they are on to something with their long thin route strategy. That is why I was surprised they went for A321s when really their present aircraft should suffice to follow the same strategy to SIN/ KUL/ BKK/ DXB out of MAA/ PNQ.

I would be interested to read about their proposed strategy over time. But prima facea it looks like they are dluting their original strategy, which so far has assured them much success.

karatecatman · Posted: Fri Nov 06, 2009 1:35 pm Post subject:

Sent by email
A World of Indifference
Airlines are mournfully ripping out biz seats to cram in more cattle rows, but Paramount, India’s only business class airline, is thriving. At least that’s what they say; the company isn’t listed, so one can’t check. In June M. Thiagarajan, Paramount’s MD, ordered 10 Airbus A321s, a $700m deal. If the Airbus folks were prancing in the aisles, they’re now rather glum: Paramount hasn’t coughed up the deposit. Heck, they haven’t even paid the $1million token amount. Airbus can’t bitch publicly, natch, but they’re obviously not about to start building planes until they see some cash.

Recent news reports indicate that the airline has defaulted on lease payments, so we guess it won’t be anytime soon. (An aside: A pal forwarded some pictures taken on a Paramount Bangalore-Chennai flight — seat with broken armrest. ripped seat pocket, and his lunch, a “sandwich and fruit cake [that were] stale and in an unsealed packet. The Bisleri bottle, though sealed, had brown particles floating in it.”)
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Spiderguy252 · Posted: Fri Nov 06, 2009 1:38 pm Post subject:

ameya · Posted: Fri Nov 06, 2009 11:05 pm Post subject:

It seems paramount is in a bad state.

They are not operating a lot of their routes in last 1 month.

me111993 · Member Joined: 04 Sep 2009 Posts: 171

Whats the matter with Paramount???
They started off fairly well but unfortunately the state of the airline gas clearly gone downhill...
Previously I had heard reports of Paramount showing great interest in B777's and A350's and were on the verge of placing a massive order soon, now they are unable to collect enough funds to pay airbus atleast the advance for 10 A321's!!!
The G8 deal just ended abruptly, recently there were talks of them showing interest in buying out stake in Star Aviation, again no result...
Something seems very fishy here..
I believe that Star Aviation is owned or a part of it is owned by a extremely wealthy guy from UAE. If this guy can pump some serious money (if he hasn't already) into Star Avn, it would inevitably mean the end of the MAA road for Paramount...

tayaramecanici · Member Joined: 03 Jan 2007 Posts: 438

Manish Soni · Member Joined: 09 Sep 2009 Posts: 51 Location: Mumbai

I was wondering asto why they didnt go with the E195 (for retaining commonality & saving on crew training etc...) but upon comparing, the A321 is a far stronger contender.

Range/MTOW :
E195 = 4,077 km / 52,290 kilograms
A321 = 5,600 km / 93,500 kilograms

Takeoff Run at MTOW :
E195 : 2,044 m (6,700 ft)
A321 : 2,180 m (7,200 ft)

Seating :
E195 : 122
A321 : 220 (1-class) or 185 (2-class)

Great, they chose the right aircraft - most folks here could have made that decision for them but, the main battle is to get asses on seats, lets see which what that goes.........

karatecatman · Posted: Mon Nov 16, 2009 12:16 pm Post subject:

www.livemint.com/2009/11/15221910/Paramount-may-buy8-turboprop.html
Paramount may buy 8 turboprop planes for up to $250 million
These planes, which have seat capacity ranging from 40 to 70, will be deployed to connect smaller cities
P.R. Sanjai

Mumbai: Chennai-based full business class airline Paramount Airways Ltd could be the only Indian carrier to place orders for planes at the five-day Dubai Air Show that ends on 19 November. The airline plans to sign an agreement to buy at least eight turboprop planes at an estimated cost of $230-250 million (around Rs1,070-1,163 crore).
Turboprop planes are manufactured by Canada’s Bombardier Inc. and Airbus SAS subsidiary ATR.

These small planes, with seat capacity ranging from 40 to 70, will be deployed to connect smaller cities such as Cooch Behar (West Bengal), Agatti (Lakshadweep Islands), Salem and Tuticorin (both in Tamil Nadu). Bigger planes in Paramount’s fleet, including five Embraer aircraft made by Brazil’s Empresa Brasileira de Aeronáutica SA, cannot land on the airport runways in these cities.

“The carrier is evaluating options between Bombardier’s Q400 and ATR’s 600 series of turbo planes. Initially we would be leasing eight turbo planes and (they) would be later replaced with new ones. The new planes would join the airline’s fleet between January and May,” said a senior Paramount Airways executive, who didn’t want to be named.

“These planes will be having all business class configuration like the existing Embraer planes. The funding for these planes would be done with the help of European credit agencies,” the executive added.
Paramount Airways found itself in a controversy after lessor GE Commercial Aviation Services (Gecas), an arm of General Electric Co. (GE), asked India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), to deregister three Embraer jets after the airline defaulted on payments for the aircraft.

A second Paramount Airways executive, who also didn’t want to be named because he is not authorized to speak to the media, said his carrier had settled the issue with Gecas. Mint could not independently verify this and could not contact Gecas immediately over the weekend.
On 19 July, the carrier signed an agreement at the Paris Air Show with Airbus to buy 10 A321 passenger jets with an option to buy 10 more, the biggest order placed by an Indian airline firm in about two years.
Indian domestic carriers have been burdened by losses in the face of high costs and excess capacity.
“It makes sense for Paramount Airways to grow its fleet. Also, turboprop planes do not attract landing, parking and navigation charges at Indian airports. Besides, the sales tax on such planes are as low as 4%,” said Mahantesh Sabarad, senior analyst with domestic brokerage Centrum Broking Pvt. Ltd.

However, Sabarad, who tracks listed airline stocks, said he is not sure about the business model for these new turboprop planes as “travellers of these small cities will not opt for turboprop planes to get comfort of business class”.

“Turboprops will not be having that appeal for flying business class. Hence, the airline may have to tweak the business model to explore opportunity to have more passengers,” Sabarad said.
The websites of the aircraft manufacturers claim that both the Q400 series aircraft of Bombardier and ATR 600 series are fuel-efficient and have low greenhouse gas emissions.

If bought, Paramount Airways will have two types of aircraft in its fleet. “We have no plans to phase out Embraers. The reason behind opting (for) turboprops is because certain smaller markets demand smaller planes and there are operational restrictions at these smaller airports,” said the second airline executive cited earlier.
“There are several airlines in the country and world that are having multiple types of aircraft. The aircraft types are determined by the market conditions,” he said.

With five planes, Paramount Airways, which was launched in October 2005, flies to 16 destinations across India and operates 72 flights daily, carrying 3,600 passengers. According to DGCA, the carrier had a 1.5% market share
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ameya · Posted: Mon Nov 16, 2009 8:26 pm Post subject:

I guess their current aircrafts are down...
doesnt matter much if they just place orders for more.

bob · Member Joined: 22 Jul 2007 Posts: 103 Location: bom

Latest paramount is taking ex Kingfisher ATR 42 5 nos for operation and may return E 175/E-190 ...
will keep update on same
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ameya · Posted: Mon Nov 16, 2009 10:28 pm Post subject:

would be bad for Regional jets era in India.

I7 would have to close down, AMD,DEL,PNQ,CCU,IXA in that case, which also means the end of hub and spoke model.

me111993 · Member Joined: 04 Sep 2009 Posts: 171

Is there even slightest of a demand of Business class on destinations like Cooch Behar and Salem??
Also are you sure that E170's are going to b returned? It seems highly unlikely as the ATR 600 and B-Q400 wont make much of a difference capacity wise. Pro's and Con's can always be discussed but if they are replacing their entire fleet to fly to Cooch Behar, it is just pure stupidity.
Plus, even if a/c's are replaced they would want to retain successful routes...
Me111993

HAWK21M · Posted: Tue Nov 17, 2009 1:46 pm Post subject:

haree · Posted: Tue Nov 17, 2009 1:49 pm Post subject: