Paramount, IndiGo get Govt nod to import 168 aircraft
Added: (Fri May 21 2010)
Pressbox (Press Release) -
Chennai-based Paramount Airways and Delhi-based low-cost airline IndiGo have been given “in-principle” approval to import 168 aircraft between them.
The two airlines got “in-principle” permission by the Aircraft Acquisition Committee meeting of the Ministry of Civil Aviation here on Monday.
Sources told Business Line that Paramount sought permission to import 18 aircraft including 10 Airbus A-321, six Q-400 Bombardier and two Embraer aircraft at an estimated value of over $2 billion. In June last year, the airline had placed confirmed orders for 10 Airbus A-321s with the option of taking another 10 aircraft. The airline currently operates a fleet of Embraer aircraft.
The airline plans to fund the acquisition of the Airbus through European Commercial Bank loans while funding for the other aircraft will be arranged through a consortium of international banks. Generally ECB loans finance almost 85 per cent of the cost of the acquisition.
Paramount Airways will utilize the new aircraft to operate more flights on existing routes, apart from expanding its reach. The airline has been fighting court cases as some leasing companies have been seeking to withdraw some of the Embraer aircraft given to the airline.
GoIndiGo has been given permission to start negotiations with various aircraft manufacturers and leasing companies to import 150 aircraft. Currently, IndiGo has a fleet of 30 Airbus aircraft. In 2005, the airline ordered 100 Airbus at an estimated value of $6 billion.
The decision of both the airlines to import more aircraft comes close on the heels of them becoming eligible to start international operations from next year. The Government had mandated that any airline which had completed five years of domestic operations and had a fleet of 20 aircraft was eligible to fly abroad.
At the time of making the announcement for acquiring Airbus aircraft, the Paramount Managing Director, Mr M. Thiagarajan, had told Business Line that the aircraft will be used to start international operations mainly to the Far East, West Asia and Africa.