Paramount places orders for 10 aircrafts for $1.5 bn

Aiming at launching international services, all-business-class carrier Paramount Airways today placed a $1.5 billion order for acquiring 10 Airbus A-321 aircraft with each of them costing over $90.3 million.     

Paramount signed a memorandum of understanding (MoU) with the major European aircraft manufacturers on the sidelines of the ongoing Paris Airshow at Le Bourget in France.     

Under the MoU the Chennai-based airline has an option to place orders for 10 more aircrafts in future.     

"We signed an MoU with Paramount Airways for confirmed orders for ten A-321s and ten more on option," Airbus Vice President (Sales) Miranda Mills told PTI from France.     

The airline has already made its intentions clear that it wants to launch international flights from southern India by the year-end.

The airline is planning to launch international services from its key hubs and at present "assessing opportunities to fly into the Far East and Middle Eastern countries," airline officials said.     

Maintaining that the $1.5-billion deal would be funded by the European Central Bank, Paramount Managing Director M Thiagarajan said the signing of the MoU marked "an important and strategic landmark in our expansion plans and in particular our goal to become a leading international carrier."     

"The A-321s will help us realise these ambitious and attainable goals and we are delighted with our aircraft choice," he said.     

Paramount, which launched operations in October 2005, is the first premium service, all-business-class, Indian carrier.     

In a statement, Airbus COO John Leahy said Paramount's decision to opt for A-321s was "a testament to the aircraft's leading position in this sector". He added that the airline and his company planned to develop a long-drawn relationship.