Paramount Airways
| Company type | Private |
|---|---|
| Industry | Airline |
| Founded | October 2005 |
| Defunct | 2010 |
| Headquarters | Madurai , India |
Area served | Southern and eastern India |
| Products | Air transport services |
Paramount Airways was a Chennai-based airline in India that primarily catered to corporate passengers before ceasing its operations in 2010. Its main operational base was Chennai International Airport, and it holds the distinction of being the first Indian airline to introduce the New Generation Embraer 170/190 Family aircraft into its fleet. Established in October 2005 with headquarters located in Madurai, the airline connected various regional destinations throughout southern and eastern India until early 2010.
Decline
The airline's activities were suspended following legal conflicts with the lessors of its Embraer aircraft, which led to the grounding and confiscation of its planes. In November 2010, Paramount secured a favorable court ruling and announced plans to relaunch services utilizing Airbus and Bombardier planes, aiming for a December 2010 resumption of its network; however, this relaunch did not materialize. A British court awarded compensation amounting to Rs 1,650 crore in a 2012 judgment against GECAS. Paramount renewed its operating certificate from the DGCA and intended to recommence operations focusing on southern India along with select cities such as Mysore, Tuticorin, and Puducherry.
Despite these efforts, financial institutions—including Bank of India, State Bank of India, Central Bank of India, Andhra Bank, Indian Bank, and IDBI Bank—to which Paramount owed approximately Rs. 550 crore, petitioned the DGCA to prevent the airline from resuming flights until outstanding debts were settled. The company planned a May 2013 restart utilizing six ATR-72-600 aircraft; nevertheless, banking authorities once again intervened to block this attempt due to unresolved liabilities.
On 6 May 2016, the Central Bureau of Investigation (CBI) initiated legal proceedings against Paramount’s promoters concerning allegations of fraud, misappropriation of loans, and defrauding public sector banks. Authorities conducted raids at various sites in Chennai and Madurai, including company offices and residences linked to promoter M. Thiagarajan and other executives.
Destinations
Paramount Airways concentrated on serving cities in South India and expanded its reach in 2009 to include eastern Indian locations such as Kolkata, Guwahati, and Agartala.
Fleet
The airline operated the Embraer E170s, marking it as the first Indian operator of this aircraft type. On 20 June 2009, Paramount signed a memorandum of understanding (MoU) to acquire ten Airbus A321-200 aircraft, with an option for an additional ten units; this purchase was expected to be financed by the European Central Bank. Additionally, an order for six Bombardier Dash 8 Q400 turboprops was placed. However, none of these procurement agreements were finalized.
Awards and recognition
- In 2007, Paramount Airways was honored with the "Arch of Europe" Award presented in Frankfurt.
- The airline also received the "Award of Excellence" from the Institute of Economic Studies.