Paramount Airways, the Coimbatore-based private airline, is in an advanced stages of negotiations with aircraft manufacturers Airbus and Boeing for a $1 billion order of 15 wide-bodied aircraft. The deal is likely to be announced shortly.
The deliveries of these aircraft are expected to take place between 2010 and 2014. The aircraft are likely to be financed by the Paramount Airways Group through funding from banks such as US Exim Bank.
"We are in the final stages of sealing the deal. There are some last-minute negotiations that are going on. If things work out, we are likely to place the order before the Singapore Airshow ends," said M Thiagarajan, managing director, Paramount Airways.
He, however, refused to divulge whether the deal was going to be sealed with Boeing or Airbus, but he did confirm that the order would either be for Airbus 350s or 330s or Boeing 777 or 787. Paramount plans to fly on international routes by 2012.
"We would be using the aircraft for our international operations as and when we get the sanctions to fly abroad. We would be looking at destinations in Europe such as Vienna, Paris and also to the Far East to Hong Kong or Bangkok," he added.
Paramount started operations in the South in 2005 and connects major commercial hubs to primary metros in the country. It is one of the leading airlines in the South with a 26 per cent market share.
It plans to have a pan-India presence and will be flying to Pune and Goa by April-end or early May. Currently, it operates only in south Indian destinations.
The airline operates new-generation Embraer 170/190 aircraft with an existing fleet of seven and plans to add another 40 by the end of 2010. This is when the airline wants to enter north India.
Paramount's low-cost model has created a buzz because it is the first airline to offer full business-class service at prices equivalent to economy-class fares of other carriers.