M Thiagarajan, managing director, said: "We are planning to place orders for 40 aircraft starting delivery schedule from 2008 end to 2011."

Paramount Airways, promoted by Madurai-based textile house Paramount Mills, currently operates five Embraer aircraft and is awaiting delivery of 15 more.

Paramount is the only civilian airline using Embraer aircraft with seating capacity ranging between 70 and 90. It operates with only business class and first-class configuration.

"We will be marking our presence in the western region by 2008. With Mumbai as western region base, the airline would cover Gujarat, Rajasthan and Madhya Pradesh. This could be through acquiring an existing airline because it will save lot of time for us. The acquisition will be funded by internal accruals," he said.

The airline claims that it is the market leader in south Indian market with 26 per cent market share. "After setting up base in Mumbai, the western region would be connected with the southern region. By 2010-11, the airline would be flying to north-eastern parts of the country," Thiagarajan said.

Embraer can fly into small airports of the north-eastern region with small planes like the ATR or the Bombardier aircraft.

Referring to the business model, he said: "We are a full-service carrier and we do not believe in dropping fares. The airline is also in talks with international airlines for possible code sharing agreements to offer more reach."

Thiagarajan pointed out the airline was also exploring the possibilities of getting an Embraer simulator for training pilots and engineers.