Business OpportunitiesParamount in talks to buy Star Aviation
Wants to expand within the country and outside, while Star Aviation, yet to begin operations, has three aircraft ready
- Star Aviation to buy 10 aircraft for Rs 1,400 cr
Chennai-based Paramount Airlines has sent feelers to a south-based regional carrier, Star Aviation, for a possible acquisition of the airline. Star Aviation got an operating licence in 2007, but has yet to start any flights.
“We are looking at acquisitions to expand and we are talking with Chennai-based Star Aviation,” said a senior executive of Paramount Airways.
Star Aviation Pvt Ltd, part of a Dubai-headquartered conglomerate, the ETA Star group, could not be spoken to for comments.
Paramount is the only airline in India to offer full business class service at prices comparable to the normal economy class fares of other airlines. It flies to 16 destinations in the country.
The airline, which started operations in October 2005, operates five planes — two Embraer 170 and three Embraer 175. Established by the Madurai-based textile company, the Paramount Group, it has ordered 10 A321-200 aircraft for short-haul international routes to be launched next year, when it completes the mandatory five year pre-requisite to fly abroad.
The source added that acquisition made sense for the airline, as Star Aviation has a fleet of three Embraer aircraft, which will add to Paramount’s existing strength.
There were reports that Paramount was buying GoAir, which has eight aircraft and 5.8 per cent market share, in a cash and equity deal, paying Rs 100-150 crore in cash and a stake of 7-8 per cent in the Paramount Group to the Wadias, who own GoAir. But GoAir has denied all such reports of talks.