Chennai, April 13, 2006 (PTI)

Newly launched private carrier Paramount Airways today said the Airports Authority of India has allotted 1,00,000 sq.ft of land to the airline at the Chennai airport for construction of a hangar.

"The company has been given 1,00,000 sq.ft of land at the airport by the Airports Authority of India, for the construction of the hangar," M Thiagarajan, Managing Director, Paramount Airways, told reporters here.

Construction of the hangar, which would cost about $40 million and would take about 14 to 20 months to be completed. Regulatory approvals have been sought for the project, he said.

Paramount would also be acquiring eight aircraft and press them in service by October and expand the fleet to 20 aircraft in as many months.

"Boeing had made a presentation to us and we are evaluating the Boeing 787." Paramount currently uses the Embraer 170/190 series of aircraft which is a 70-seat all business class service.

The MD announced the launch of services between Chennai and Hyderabad and Chennai and Bangalore from April 19. .

He also said the fares on the new routes would be Rs 1,299 on the Chennai-Bangalore service and Rs 1,999 on the Chennai-Hyderabad sector.

By May end, the airline would be offering first class seats to its customers and will have about 11 first class seats and 64 business class seats on its flights.

Paramount Airways is promoted by the Madurai-based Paramount group, whose core interest is in textiles.