Paramount makes the buzz - large order for Embraer jets and stake in GoAir in the works

Mumbai: All set to scale up operations in a fast expanding market, Chennai-headquartered domestic premium service carrier, Paramount Airways, is considering placing a huge order for Embraer planes, according to market sources.

Reports would have it that Paramount may place an order for as many as 40 Embraer jets, valued at $2 billion (Rs8,000 crore) sometime in the coming days, an order that would also coincide with ongoing trade talks between India and Brazil.

Paramount has 24 per cent market share in the south of the country.

Brazil's Embraer is the world's fourth-largest plane maker and like other such manufacturers around the world is anxious to tap India's domestic aviation market, which is tipped to grow at an annual rate of more than 20% over the next four years.

Merger with GoAir
Meanwhile, market rumours would also have it that Wadia-family run GoAir and Paramount are in talks, which may see GoAir divest up to 40 per cent stake to the latter. According to reports, Paramount Airways may have placed a $100-150 million cash buyout proposal for GoAir, along with a stake holding.

Reports say that Paramount may look at funding the deal through a combination of equity placement and debt.