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Chennai, Mar 13: Paramount Airways has rejected offers for acquiring low-cost carriers as it strongly feels that this model will not survive in the long run in the country.

“Paramount Airways is keen on acquiring airlines that suits our business model,” said the airline’s Managing Director M. Thiagarajan at a press conference in Chennai today.

The airline, which is a market leader in South India, plans to connect airports in North-East and Western India soon, he said.

Paramount Airways is augmenting its fleet size and two more aircraft will be added to the existing fleet next month. The new aircraft will enable the airline connect more cities such as Trichy and Calicut besides operating more flights from Bangalore to Pune and Goa.

The airline, with 70-80% passenger load factor and 100% passenger retention factor, has plans to fly to Europe, Middle East and also the US by early 2011.

“Paramount is in talks with Boeing and Airbus for acquiring wide-bodied aircraft,” says Thiagarajan adding that Embraer has the advantage in terms of fuel consumption.

Paramount is a profit-making airline, declared Thiagarajan. He said the funds for expansion would be raised internally. 

Admitting that the airline industry is facing the heat of rising crude prices, Thiagarajan said there’s advantage of producing the aircraft turbine fuel in India.

On the availability of pilots, Thiagarajan said though co-pilots are adequate in number there was a shortage of captains.

Paramount Airways has been awarded the “The Century International Quality Era” in the gold category at the International Quality Convention in Geneva. This prestigious award has placed Paramount Airways on a par with global carriers like Singapore Airlines and British Airways.

Thiagarajan received the award at the felicitation ceremony held in Geneva on March 10, 2008.