Advertisement

Help
You are here: Rediff Home » India » Business » Budget 2007 » Report
Search:  Rediff.com The Web
Advertisement
  Discuss this Article   |      Email this Article   |      Print this Article

Paramount to fly to Western India
Get Business updates:What's this?
Advertisement
February 27, 2007 10:58 IST
Last Updated: February 27, 2007 11:52 IST

Private carrier Paramount Airways, which has a strong presence in South India, would enter the Western Indian skies by the end of this year and add 15 more aircraft to its kitty in next three years.

Managing director M Thiagarajan said the airline would try to provide maximum number of services across the cities in the Western region. However, he did not divulge the cities the airliner would serve in the region.

"By early 2010, we will have a national presence," he added.  Paramount will induct 15 more Brazilian made 70-seater Embraer 170/175 and 110-seater Embraer 195 aircraft in phases within the next 36 months, he said.

The carrier already owns five Embraer 170/175 aircraft and connects eight destinations in South India through 50 daily flights.

Though a newcomer in the aviation sector, the airliner carries an average 100 tonnes of cargo daily, he said. Paramount will also launch its services to Tiruchirapalli in Tamil Nadu and Kozhikode in Kerala soon.

Our efforts to provide cost-effective excellence will continue in the forthcoming services also," Thiagarajan said. The Embraer aircraft with "lower maintenance costs, greater speed and lesser fuel consumption," contribute in cutting flying costs, he claimed.

On the high Air Turbine Fuel prices in India, he said the taxes on the fuel should be rationalised. The sales tax varied from one state to the other from 23-30 per cent. The customs and excise duties were also higher, he said.

"Despite India being an ATF surplus country, the prices are much higher compared to international prices and the fuel expenses account to over 30 per cent of the total flying costs," he said.

The Federation of Indian Airlines, an association of domestic carriers, has asked the Civil Aviation Ministry to lower the taxes on ATF.

"If the tax rates come down, we will be able to lower our ticket charges from 15 to 20 per cent," he added.

Apart from rationalisation of tax, he also wanted the coming Union Budget to provide continuation of withholding taxes on lease payments of aircraft. Paramount Airways is promoted by the Paramount Group, leading textile manufacturer based in Madurai.
© Copyright 2007 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
Buy Taxmann's Budget 2007-08 (with analysis) on Rediff Books.
 Email this Article      Print this Article

© 2007 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback