Paramount may buy 15 aircraft from Embraer

The list price of the 15 small aircraft is about $500 mn.

Coimbatore-based Paramount Airways is in talks with Brazilian aircraft maker Embraer to acquire 15 small aircraft for a list price of about $500 million.

In June last year, Paramount had ordered five planes from Embraer for $138 million to start its flights. The airline started operations in September.

According to managing director M Thiagarajan, the airline is in final stages of discussions with Embraer, the world's fourth-biggest aircraft maker.

"We are in an advanced stage of negotiations with Embraer and hope to conclude a deal as soon as possible," he said.

The discussions with Embraer include the delivery of the new planes for the next two years, Thiagarajan said. "We expect the airplanes to join the fleet from September-October onwards. We are working out the financing options," he said.

Paramount, which operates 10 flights a day connecting four cities including New Delhi in the north and Chennai in the south, will expand to three more cities by month-end, he said. The airline now has two aircraft, flying up to 75 people each.

"We expect that with the new aircraft joining us we will be in a position to connect more cities and centres. We will look at multiple options that are available to us," he said.

Paramount is also in discussions with Singapore Airlines Ltd. and other carriers for tie-ups, Thiagarajan said. According to the proposal, Paramount will provide flight connections within India for passengers of carriers such as Singapore Airlines.

Closely held Paramount, which has Kotak Mahindra Bank and Bennett Coleman & Co. as its investors, has charted out a business plan aimed at getting passengers with executive class comforts.