Paramount Airways, a start-up regional carrier based in Coimbatore, India, will begin operations this August with the first of five Embraer 170-series regional jets that are being acquired by means of eight-year operating leases from GECAS and Embraer’s own leasing company. Two EMB 170s and three EMB 175s will enter service over a 12-month period with Paramount, according to M. “Raj” Thiagarajan, managing director of the family-owned firm, and Maurício Botelho, CEO and president of Embraer. The five aircraft have a total retail value of $140 million, according to A. Ramamoorthi, Paramount’s financial advisor.
“We intend to serve untapped regional city-to-city routes without having to travel through ‘metros’ [hubs],” explained Thiagarajan. Paramount selected the EMB 170 family because the aircraft offer a “big jet experience” on two-plus-hour regional routes, he said. Thiagarajan noted that the EMB 170/175 aircraft have roomy aisles and seats, two toilets and spacious galleys. The EMB 170 will be configured with 72 “business class” seats. Paramount will offer “very aggressive pricing” that will be at or below economy ticket prices, Thiagarajan said. The airline’s EMB 175s will have 11 first-class and 64 business class seats.
Botelho was enthusiastic about Paramount’s prospects. “India has a lot of expansion to be explored. Paramount has all the conditions [for success]. They’re entrepreneurs,” Botelho said. He noted that India has “extraordinary” potential for economic growth, particularly because of its “solid entrepreneurial activity” and its population of 300 million.
Thiagarajan said Paramount won’t compete with existing air carriers in India, but rather its operations will complete others. He declined, though, to describe Paramount’s proposed route structure for competitive reasons. He disclosed that the carrier “is in talks” with other carriers, both in and outside India, regarding inter-line agreements. Thiagarajan views the EMB 170/175 as steps to operating larger aircraft such as EMB 190/195 or even bigger models. —Fred George
