A profitable airline in a loss making industry
By: Anshuman Gandhi on Monday, August 10, 2009, 11:41:23 AM
7 Reponses

Most might not have heard of this small success story but Paramount Airlines has been making profits for the second year in a row while the Indian Airlines is in need of a bailout, Vijaya Mallya crying foul and the other airlines raising prices.
The company is 4 years old and is lead by 31 year old M Thiagarajan. The founder of Paramount Airlines is a private pilot license holder and started his new venture in a business which was already a very overtly crowded. There were a series of decisions made by the man which made all the difference to the aviation company.
 He bought 80 seater Embraers from a Brazilian company. This was unlike the competitors in the sector which were intent on purchasing much larger Boeing 737s and Airbus 380s. As the company was new in the market and wanted a foothold in  the Indian Aircraft market they came at a much lower rental costs as well much more economic maintenance costs. The planes also were much more fuel efficient and as the planes weigh less then 40 tones, are spared the parking and landing fees. The planes can land in smaller airports and consume less time to get ready for the next trip. The sales tax charged being charged is 4% as compared 28% to 32% charged on other players. The company also only focused itself on the southern market where the competition was much bearable then compared to the north. The intense focus has helped the airline capture 27% of the market in which it operates. The company only focuses on the business section thus the tickets can be made a little pricy and all the problems associated with mass transportation were in toto avoided.
The company is run from a home cum office and operates only 5 planes which makes the task of focusing the organizational efforts and developing a careful reputation much more easier. With the whole industry down in the dumps these are the small success stories, which run the whole industry and prove it that the airline industry is a viable industry to work in.


  View all posts    
  Rate this post    
  Leave a comment    


1 .  Private Jet Says:

Monday, October 26, 2009 , 05:57:00 PM
An intelligent approach, they have taken. Impressive. Source: http://www.emtjets.com

2 .  Private Jet Says:

Sunday, October 04, 2009 , 06:43:46 PM
Congratulates. This is good for aviation industry too. Source: http://www.emtjets.com

3 .  Manmeet Singh Says:

Monday, September 21, 2009 , 09:54:12 AM
Its good to see that not only the sop stories are reaching the ears of the masses

4 .  Sakshi Mitra Says:

Thursday, September 17, 2009 , 05:26:49 PM
The country's media is obsessed with death, destruction and chaos. No wonder this news clip did not make it to the front page of any newspaper in the country.
Just a small company battling huge odds and winning but still going on un-noticed.

5 .  namita Says:

Monday, August 17, 2009 , 03:14:43 PM
Very inspiring article. So its not age or work experience which matters. It is one's management tacts which matter the most.
Anshuman keep it up

6 .  avani Says:

Wednesday, August 12, 2009 , 03:27:55 PM
the blog is very interesting and has given a very good example to the general crowd who think that aviation industry is in slump. also this blog can be an inspiration to the youngsters that how to develop yourself in a tough situation.

7 .  Ronit Roy Says:

Wednesday, August 12, 2009 , 03:27:52 PM
This has been a really good example of how to manage a firm amid the recession. And there is lot of thing which the Indian airlines should learn. Only by changing the top management, things won't change. Well informative article.

First  Previous    Next  Last
Enter Your Name :
Enter your Email Id :
Leave a Comment :