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EXECUTIVE INTERVIEW: PARAMOUNT AIRWAYSDon’t try booking economy on Paramount Airways; it doesn’t exist.Managing director, M. Thiagarjan, tells TOM BALLANTYNE whyIN THECOMFORT ZONEParamount Airways hardlycaused a ripple when it waslaunched some 18 months ago.With just one plane, a 75-seatEmbraer 170 regional jet, it hadonly two services, from Chennai to its homebase, Coimbatore, and to Cochin.Today, Paramount has five Embraers and42 routes linking cities across southern India.Another 15 Embraer 170/190 series jets aredue to arrive over the next two years. It hasadded Bangalore, Hyderabad, Madurai,Vizag, Trivandrum and Tirupathi to the listand, according to managing director, M.Thiagarajan, is now on the verge of spreadingits wings further afield.The final goal, he says, is to blanket thecountry, giving prominence to secondarycities where he believes real growth lies.What makes Paramount unique in India,is that it has no economy class. It is targetingfirst and business class travellers, a strategythat appears to be paying off in a regiondriving India’s economic growth.“On the sectors we have been flyingfor more than six months we are chock-ablock,”said Thiagarajan. “We have 26% to27% market share and we have pushed themarket leader, which was predominantlyJet Airways in these regions, into secondposition. That shows how acceptable theParamount product has been.”What Paramount offers its passengersis front-end pampering at near-economyprices through spacious seats, a choice of16 hot meals that can be ordered at the timeof reservation and on-board service thatincludes tablecloths, damask napkins, crystalglasses and fine bone china. It also providesvalet service to help customers carry theirbags to check-in. They are then escorted toa lounge and on to the aircraft.“We are neither a low-cost carrier nor arewe a full-service carrier. We have positioned‘I always had aviation close to myheart. I have been able to convertmy passion into something moremeaningful.’M. Thiagarajanmanaging directorParamount Airwaysourselves as a new breed of airline, a highvaluecarrier, or HVC. We stand for full valuefor money,” said Thiagarajan.The airline is owned by the ParamountGroup, one of India’s foremost textilemanu fact u rers, based i n Madu r ai.Thiagarajan, a third-generation member ofthe family that began the business, is alsomanaging director of the company that runsits textile mills. A private pilot, at 30 he isone of the youngest airline chief executivesin the world.He resists any suggestion the group hadto make a giant leap to move into aviation,arguing his family’s interests have alwaysbeen diverse.“It’s not that it’s a quantum leap fromtextiles to something totally new. Therehas been a gradual evolution. I alwayshad aviation close to my heart. I havebeen able to convert my passion intosomething more meaningful and intoa powerful business proposition,” saidThiagarajan.“We didn’t rush into the aviationindustry because it was the flavour ofthe season. We studied the reasons forairline failures around the world andlooked into the positive and negativepoints of different airline models.“We have always been able to createa niche position where others follow us,rather than the other way around. Wewanted to bring the same thing intoaviation.”Paramount focussed first on southernIndia for two reasons. It was homeground for the airline and also, as thecountry’s fastest-growing region, it hadattracted major financial institutions andinstitutional investors, as well as growingindustries.“As a strategy we wanted to saturateone region. Today we are almost at thatstage. No other airline provides the frequencyand connectivity that we do in the south. So,perhaps in another couple of months, we willexpand,” said Thiagarajan.The plan is to replicate the Paramountmodel throughout the country. “By 2010 or2011 we see ourselves as a national carrierhaving flights all over India and we willsaturate the whole of the country,” saidThiagarajan.Paramount doesn’t offer the cheapestseats in town, aiming instead at attractivefares for corporate customers and high-endleisure travellers.18 ORIENT AVIATION INDIA MARCH 2007