Now, Paramount Airways seeks merger with GoAir

The aviation industry is heating up like anything, as after the Jet-Sahara, Air India-Indian Airline merger and a nod for the Kingfisher-Deccan merger, Paramount is reported to talking to GoAir for a merger.

Talks are doing the rounds that the Madurai-based Paramount Airways has sent feelers to Wadia-promoted GoAir. In recent past, GoAir had indicated that it might sell off 26 to 40 per cent of its equity.

The Wadia group, however, has reportedly expressed no desire to move ahead.

But one should keep in mind that a few days before the Kingfisher-Deccan merger; Deccan to had denied all reports of their merger.

Kingfisher will take up 26 per cent stake of Air Deccan at Rs 150 per share.

About two months ago, Jet took over Air Sahara and decided to run it as a separate airline under the Jet Lite brand.

The Paramount Airways is reportedly eyeing a stake in GoAir with the aim of foraying into the western part of the country.

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AirTran's tender offer set to expire

AirTran Holdings Inc. isn't likely to announce until early next week whether it will again extend its tender offer to acquire Midwest Air Group Inc.

The tender offer is set to expire at the close of business Friday, but AirTran has until the opening of the stock market on the next business day -- June 11 -- to decide whether to extend the offer. Orlando, Fla.-based AirTran Holdings, parent company of AirTran Airways, has extended previous tender offers and has increased its bid for Midwest multiple times.
AirTran's latest offer consists of $389 million cash and stock for Oak Creek-based Midwest Air Group (AMEX: MEH), which operates Midwest Airlines.

AirTran (NYSE: AAI)previously reported that as of the close of business on May 16, shareholders had agreed to tender more than 13.9 million shares of Midwest to Galena Acquisition Corp., a wholly owned subsidiary of AirTran, which represents more than 56.6 percent of all outstanding shares of Midwest Air Group. AirTran decided at that time to extend the offer.

"We don't expect the results to be significantly higher," AirTran spokesman Kevin Healy said.

Midwest and AirTran also remain locked in a proxy battle for three seats on Midwest's nine-member board of directors. The vote will be decided at Midwest's annual shareholders meeting on June 14.

By The Business Journal
Via: Yahoo! Finance Read More..

AirTran launches BWI-to-Maine service

If there wasn't already a traditional U.S. custom for the launch of a new direct airline flight, maybe there is now: the crustacean swap.

AirTran Airways and officials from Maryland and Maine marked the first run of a nonstop flight between Baltimore/Washington International Thurgood Marshall Airport and Portland, Maine, with a ceremonial crab-lobster trade Thursday.

A group of Marylanders, including BWI Airport Deputy Director Jim Walsh, and a box of Chesapeake Bay crabs were passengers on the inaugural flight, AirTran said in a news release. The contingent presented the Old Line State delicacy to Maine Gov. John Baldacci and then returned with some Maine lobsters.

AirTran will offer three daily round-trip nonstop flights between BWI and Portland International Jetport. One-way tickets will sell for about $74 two weeks in advance and $179 for walk-up tickets. A one-way business class ticket will go for about $249, according to the release.

AirTran is the second-largest carrier at BWI behind Southwest Airlines. The airline's hub is at Hartsfield-Jackson Atlanta International Airport.

By the Baltimore Business Journal
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Low Cost Carriers Out Of Portland Impact Air Fares

PORTLAND (NEWS CENTER/AP) -- A ribbon-cutting ceremony was held at the Portland International Jetport Thursday to mark the start of service from the second of two new low-cost carriers at the facility. The impact of AirTran Airways is already having a big impact on air fares.

Governor Baldacci was on hand to help AirTran kick off its service out of the Jetport. The Atlanta based discount airline is offering three daily flights to Baltimore, and one Saturday non-stop flight to Orlando.

Months ago, Continental Airlines, Delta Air Lines, Northwest and U.S. Airways began lowering prices to compete with AirTran.

Tom Parsons of Bestfares.com says travelers in the region should be "very happy" with the lower fares resulting from AirTran, as well as JetBlue.

By Jennifer McCausland
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Roger Collis: Travel Deals

AIR JAMAICA United States to Jamaica Four-day/three-night package from $655 per person at the Holiday Inn Sunspree Resort in Montego Bay, Jamaica, includes round-trip non-stop flight from New York (JFK or Newark), hotel accommodations, round-trip transfers, a $50 credit at al Tajmahal duty free stores, and 'buy one get one free' offers with local tour operators. Until Dec. 15. www.AirJamaicaVacations.com.

EUROFLY United States to Italy Non-stop round-trip flights from New York to Rome, Naples, Palermo and Bologna, from $749 in economy and $3,138 in business class, plus five fly/stay packages starting in September. Sicily: 9 days/7 nights from $1,599 (departures from Sept. 13 to Nov. 1); Amalfi Coast: 9 days/7 nights from $1,599 (departures from Oct. 12 to Nov. 2); Abruzzo & Rome: 8 days/6 nights from $1,799 (departures from Sept. 25 to Oct. 30); Roman Countryside/Frascati: 8 days/6 nights from $1,599 (Departures from Oct 6 to Nov. 2); Bologna & Tuscany: 9 days/7 nights from $1,599 (departures from Oct. to Nov. 3). 800-459-0581. www.euroflyusa.com

THAI AIRWAYS Sydney to Bangkok/Phuket Round-trip for 623 Australian dollars (plus 243 dollars tax). From July 16 to Sept. 20. www.travel.com.au

LANGHAM HOTEL Hong Kong Two-night 'Tailor Made' package from 5,800 Hong Kong dollars (plus tax) in a double 'club floor' room includes, three bespoke cotton dress shirts for one person male or female, one-way limo transfer between hotel and airport, breakfast, access to club lounge, with snacks, hors d'oeuvres and evening cocktails, a daily allowance of 400 Hong Kong dollars for personal laundry, pressing and dry cleaning, use of the pool and 24-hour gym, free local calls. Until Dec. 31. hkg.sales@langhamhotels.com or visit http://hongkong.langhamhotels.com.

Amalfi Coast: 9 days/7 nights from $1,599 (departures from Oct. 12 to Nov. 2); Abruzzo & Rome: 8 days/6 nights from $1,799 (departures from Sept. 25 to Oct. 30); Roman Countryside/Frascati: 8 days/6 nights from $1,599 (Departures from Oct 6 to Nov. 2); Bologna & Tuscany: 9 days/7 nights from $1,599 (departures from Oct. to Nov. 3). 800-459-0581. www.euroflyusa.com

THAI AIRWAYS Sydney to Bangkok/Phuket Round-trip for 623 Australian dollars (plus 243 dollars tax). From July 16 to Sept. 20. www.travel.com.au

LANGHAM HOTEL Hong Kong Two-night 'Tailor Made' package from 5,800 Hong Kong dollars (plus tax) in a double 'club floor' room includes, three bespoke cotton dress shirts for one person male or female, one-way limo transfer between hotel and airport, breakfast, access to club lounge, with snacks, hors d'oeuvres and evening cocktails, a daily allowance of 400 Hong Kong dollars for personal laundry, pressing and dry cleaning, use of the pool and 24-hour gym, free local calls. Until Dec. 31. hkg.sales@langhamhotels.com or visit http://hongkong.langhamhotels.com.

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Can I combine air miles from different companies?

I have over 160,000 frequent flier miles on Delta and 100,000 miles on American Airlines. And yet over the last two years, I have not found a way to use the miles, unless I double them. For two people traveling to Europe, it used to cost 25,000 miles each way. So we could have made the round-trip for 100,000 miles. Now the price has double to 200,000 miles. Is there any way to combine Delta and American miles for award travel on a partner airline? Andrea Spurling, New York.

The short answer is no. But you can redeem Delta Air Lines Skymiles on any of the 10 Skyteam Alliance partners that include Air France, KLM, Alitalia, Continental Airlines, and Northwest Airlines; and American AAdvantage miles on any of 20 Star Alliance partners, including British Airways (though not to London), United Airlines, Lufthansa, Singapore Airlines, Air Canada, and Air New Zealand. And you may not need as many miles as you think for round-trip tickets from New York to Paris or London. Depending when you want to travel and how flexible you are prepared to be a round-trip economy ticket with Delta from New York to Paris will cost from 50,000 to 250,000 miles. A similar ticket on American from New York to London will cost 40,000 to 150,000 miles. Click on to 'awards' at each airline site to see how many miles you need for free flights and upgrades.

My wife and I, both 73 years old, were ousted from our pre-assigned seats in the emergency exit row when we checked in for an American Airlines from Buenos Aires to Miami, because we are "seniors." I am an MD and we are both in top shape - we exercise, lift weights three times a week and play tennis. Samuel Borushek, Chicago:

I'm afraid you fell foul of the emergency exit rule exercised by many airlines by which exit rows are reserved for able-bodied passengers who would be capable of helping to open the doors in event of emergency. Ageism has extended to a presumption that older travelers are invariably infirm!

However, it is possible to reserve such roomier economy seats in advance, albeit sometimes for an extra charge.

Air Canada, for example, charges passengers in its lowest fare category, Tango, 15 Canadian dollars for an advance seat assignment, but has not yet taken to selling specific seats on its aircraft. And Northwest Airlines offers Coach Choice on its domestic network, by which passengers can book certain aisle and exit-row seats for $15 extra per flight segment. Coach Choice seats "are offered to all passengers 24 hours prior to departure; WorldPerks and SkyTeam Elite members 36 hours before departure."

KLM now offers passengers traveling from Singapore, Manila, and Curacao to Amsterdam the chance to reserve economy class seats with guaranteed extra legroom for a fee of 50 euros per seat on each flight.

In Europe, EasyJet, which has "free seating" (ie a mad scramble for the best seats), has introduced a Speedy Boarding option allowing passengers who have paid a £5 supplement to be first to board.

It is not easy to figure out the best and worst seats from airline seating plans, but some Web sites offer help. Skytrax Research (www.airlinequality.com) compares seat dimensions and gives seating tips for more than 325 airlines on long-haul flights. Aircraft seat plans at www.seatguru.com show you which seats to ask for, and which to avoid, on more than 30 airlines, including Alaska Airlines, American Airlines, Air France, British Airways, Continental, Delta Air Lines, JetBlue, Northwest, Qantas, SAS, United and US Airways. The site lists aircraft for each airline and gives color-coded seat descriptions (green designates a "very good seat," yellow, "be aware!" and red, a "poor seat."

Other useful Web sites include Lovemyseat.com, which gives seat charts, scores and reviews for 80 airlines, and Flatseats.com, which compares first- and business-class lie-flat seats and gives "sleep ratings" for airlines around the world.

Many airlines, such as British Airways, Singapore Airlines, Air France, KLM and Virgin Atlantic, allow you to check in online, even to print your own boarding card so that you can go straight to the gate when you arrive at the airport.

But this doesn't ensure you'll get a good seat, such as one in the emergency exit row with its extra legroom or an aisle seat where you can stretch at least one leg from time to time.

The snag is that normally you can only check in and book your seat 24 hours in advance by which time the best seats have mysteriously disappeared, and you are stuck in a dreaded middle seat or crushed in an especially narrow row back of the cabin by the lavatories.

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Airbus lands US$2.4b Aer Lingus plane deal

LONDON : Irish airline Aer Lingus announced on Wednesday an order for 12 new Airbus airliners worth 2.4 billion dollars (1.78 billion euros) to boost its expansion on transatlantic routes.

Aer Lingus will take delivery of six new wide-bodied A350 XWBs and six new A330 300E aircraft from 2009 onwards, the company said in a statement which added that it had obtained "substantial discounts."

The A330s will be delivered between 2009 and 2011, while the A350s will be delivered between 2014 and 2016. The carrier added that it has the option to purchase a further six A350 XWB jets for delivery by 2018.

The order brings troubled European group Airbus a new customer for its long-haul A350, which was designed to compete with the 787 Dreamliner manufactured by US rival Boeing.

Last week, Boeing had won an order for 27 Boeing 737-800 jets from Aer Lingus' key low-cost rival Ryanair in a deal worth 1.9 billion dollars at list prices. Ryanair owns about one quarter of Aer Lingus stock.

"We are pleased to announce this investment in new long haul aircraft," said Aer Lingus chief executive Dermot Mannion in the statement.

"These aircraft are key to our growth ambitions which include new routes to the United States following the Open Skies agreement."

The push into the US market has been made possible after EU transport ministers earlier this year cleared plans to free up transatlantic routes between Europe and the United States under a so-called "open skies" deal.

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Greenhouse gas plan will cripple us: EU airlines

BRUSSELS – European airlines claimed Wednesday a European Union plan for a mandatory greenhouse gas cap and trading system would cripple the industry with extra costs of 4 billion euros ($5.71 billion) a year.

Groups representing low-cost airlines such as Ryanair Holdings PLC joined major carriers such as British Airways and Lufthansa in saying the plan would diminish mobility, hurt the overall economy and cut off remote areas from tourist traffic, citing a report the airlines commissioned from global accounting group Ernst & Young and air transport consultants York Aviation.

Buying enough carbon permits to operate between 2011, when the program would begin, to 2022, will cost more than 45 billion euros ($64 billion), the airlines said.

"Airline profits would be reduced by over 40 billion euros ($57 billion) over the period to 2022," the report said. "The introduction of the EU emissions trading scheme will result in a reduction in consumer choice in terms of the range and frequency of air services.''

European airlines said they are committed to a trading system to cut emissions. However, they said they will ask EU lawmakers and governments to consider a higher limit for the carbon trading cap, as the current level – based on 2004-2006 emissions – does not take into account growth in the industry before the program would be initiated in 2011.

Because of stiff competition, airlines say they would be unable to pass costs on to customers, which would in turn prohibit investment in new routes and technology. It could also quash up to 42,000 new jobs needed to handle anticipated industry growth, the airlines said.

Europeans have been flying greater numbers in recent years as low-fare, short-haul airlines pushed ticket prices downward.

As more people fly, the European Union has committed itself to cutting overall levels of carbon dioxide by 20 per cent by 2020. Regulators say the cap-and-trade program would accomplish that without damaging the economy.

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Airline Industry Boosts Fares

The airline industry boosted many one-way fares by up to $10 late Monday, as carriers struggle with weakening domestic results, though most have had scant success in making increases stick recently.

Late Monday, Continental Airlines Inc. raised one-way fares in 30 percent of the top U.S. markets by $5 for advanced-purchase tickets and by $10 for last-minute seats, according to farecompare.com, an airfare tracking Web site. That triggered competitors American Airlines, Delta Air Lines, Northwest Airlines, United Airlines and US Airways to match on overlapping routes, as well on some routes out of hub airports.
It's the industry's fifth or sixth attempt to increase fares this year, said Rick Seaney, chief executive of farecompare.com. If it succeeds, it would be the year's first, as prior attempts unraveled within a week after low-cost carriers refused to join in, he said.

Last year, when carriers were flush amid strong demand and relatively flat capacity of airplane seats, Seaney said almost all the industry's attempts succeeded. There were about seven.

By the count of Jamie Baker, a JP Morgan analyst, the big network airlines have tried to raise fares seven times this year, with two successes. Baker also wrote in a research report that low-cost carrier AirTran Holdings Inc. was the first to raise fares Monday, increasing one-way fares by $5 to $10 by midday.

He described the industry's most recent attempt as a small fare increase. American Airlines raised about 6,000 fares. A typical broad-based increase covers about 300,000 fares, he wrote.

"Given increasingly poor sector sentiment, news of AirTran's fare increase may lift the spirits of some, though we ascribe little fundamental value to the effort," Baker wrote.

Investors have hammered airline stocks recently amid flagging domestic results, hurt by sharp competition from low-cost carriers and higher fuel costs.

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Aussies deported from UAE

Two Australian businessmen have been deported from the United Arab Emirates following a nightmare six weeks in a desert jail over accusations of sexual assault and drunkenness on an airline flight.

Mining executives Jeremy Snaith and David Evans, who received suspended sentences, flew out of Abu Dhabi at 2200 today local time (0400 AEST) aboard an Etihad Airlines service to Bangkok, sources said.

The pair and a third Australian businessman, William Sargent, who was acquitted of charges on Monday, have been in custody in UAE since their arrests on arrival in Abu Dhabi from Sydney on April 27.

Mr Sargent, also a mining executive, was booked on a flight to London, due to leave Abu Dhabi two hours later at midnight (Tuesday) local time (0600 AEST).

The trio have been detained in UAE since their alleged mid-air antics in first-class aboard an Etihad flight.

The men's lawyer Ross Hill said earlier on Tuesday that problems with seats, airconditioning and refrigeration on the original flight had been "a recipe for disaster".

"It was inevitable that people were going to be angry when they paid more than $10,000," he told the Nine Network.

But Etihad Airways spokesman Iain Burns said there was no excuse for the boorish behaviour.

"Anyone who goes to a restaurant and complains about the food or doesn't like the chair they've got doesn't allow them to behave in such an intolerable manner that they strip half naked and offer money for sex.

"The two just don't equate," he said.

Mr Burns said three hostesses, all aged about 24, were harassed by the men, but two had decided against giving evidence in court.

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Low-cost fleet set to fly

A low-cost international airline will soon make its way to the city.

Tiger Airways, a low-cost airline from Singapore, has been granted permission to fly between the island nation and six Indian cities — Calcutta Chennai, Cochin, Goa, Thiruvananthapuram and Kozhikode.

While the rates for the India leg have not been finalised yet, market sources said “a 50-60 per cent slash” from “legacy airline” rates was expected. In money terms, that would mean a Calcutta-Singapore ticket for Rs 6,000 (approx), against the present norm of Rs 14,000 (approx).

Singapore Airlines controls 49 per cent of Tiger Airways, which has been granted Foreign Carrier Air Permit by the civil aviation ministry.

“We have established Tiger Airways as the largest international low-fare airline to serve China. The link between Singapore and India represents another significant opportunity to expand our business in Asia,” said Tony Davis, CEO of the airline.

“Our strategy of expansion in Asia and establishment of the first truly low-fare airline in Australia will create new opportunities to link various cities with points across Asia,” added Davis.

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Paramount Airways on the prowl

Madurai-based Paramount Airways is looking at acquiring a west India-based airline this year and plans to follow it up with at least two more acquisitions in the north and east.

Paramount Airways managing director M. Thiagarajan said his company was considering taking over an airline whose operations were based in the west, but refused to confirm or deny rumours that the target was the Wadia family-owned Go Air.

Thiagarajan said by 2009, his company would consider acquiring outfits in the north and by 2011, would look at a pan-India presence. Sources said he was also looking at acquiring an airline network in the east by 2011.

There are, however, few small airlines in the north or east with a sizeable market presence that may interest Paramount.

Thiagarajan refused to reveal the amount set aside for his takeover plans. But banking sources said the airline may spend up to Rs 500 crore on the current acquisition target of Go Air.

Paramount, which has a 24 per cent share of the southern market, wants to grow inorganically as well as organically, officials said.

The airline specialises in flying on less frequented feeder routes.

Thiagarajan also plans to buy 40 Embraer 70-seater jets for $2 billion.

Source: www.telegraphindia.com Read More..

Shareholder watchdog backs AirTran's hostile bid

AirTran Airways' hostile takeover bid for Midwest Air got a boost Monday when a corporate governance watchdog backed the effort.

Institutional Shareholder Services (ISS) recommended Midwest shareholders vote for three AirTran candidates seeking election to Midwest's board of directors at its June 14 annual meeting.

"Three dissident nominees on Midwest's board may help a more objective evaluation of the company's strategic alternatives," the ISS reports said. "While we recognize that the dissident nominees may represent the platform with a bias towards a merger . . . this concern is outweighed by the need to exhibit a willingness to explore strategic alternatives that would increase shareholder value in light of the market events surrounding the AirTran offer."

AirTran has been seeking to buy Midwest since 2005 and launched a hostile takeover bid in December. AirTran has twice increased its offer to $389 million or $15 a share in cash and stock. More than 56 percent of Midwest shareholders backed AirTran's tender offer on May 16, but Wisconsin law gives Midwest the power to block hostile takeovers.

AirTran is seeking a hub outside Atlanta, where two-thirds of its flights now originate. Midwest is within easy driving distance of Chicago's northern suburbs, it has few overlapping routes and operates Boeing 717s — the same planes that make up the backbone of AirTran's fleet.

Midwest has rejected AirTran's overtures and managers believe their stand-alone growth plan will provide better returns for shareholders and has urged shareholders to reject AirTran.

ISS faulted Midwest for having almost no turnover in its board. Directors at the Milwaukee-based carrier have served an average of 14 years, and the company's chairman and CEO Tim Hoeksema has been in the top job 23 years.

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Ryanair Poised to Win Price Wars, Squeeze Competitors

Ryanair Holdings Plc's shares have plunged as higher costs, stiffer competition and slower growth in demand cut into profit. The airline, which reports earnings tomorrow, may emerge victorious from the turbulence.

A capacity glut is making it harder for Ryanair and rivals including EasyJet Plc to fill seats. That prompted the carriers to start a price war last month aimed at luring travelers. While lower ticket prices may drive down revenue, it's also offering an opportunity for Ryanair, Europe's biggest discount carrier, to squeeze out smaller competitors that can't afford to cut fares.

``Ryanair wants the price war'' to drive out rivals, said Stefan Halter, an analyst at HVB Group in Munich with a ``hold'' rating on the stock. ``They want to gain market share.''

Twelve of 19 analysts with ratings on Ryanair's shares, surveyed by Bloomberg, recommend buying the stock, which has dropped 14 percent from a record on April 20.

``Investors are at greater risk if they short-sell Ryanair stock and it was to rally,'' than if they buy and it falls further, said Howard Wheeldon, an analyst at BGC Partners in London.

Dublin-based Ryanair threw down the gauntlet to its rivals on May 9, saying it would sell 10 million seats for as little as 10 pounds ($20). The same day, Luton, U.K.-based EasyJet said it expected average fares to fall through the middle of the year. Ryanair Chief Executive Officer Michael O'Leary said his airline would drive down its own yields, or average ticket prices, with the promotion.

Riding It Out

With more cash on hand than its closest low-fare rivals and the best operating margin of any European airline, Ryanair can ride out the storm, analysts said.

``This industry is cyclical,'' said Ryanair's chief financial officer, Howard Millar, at a May 31 press conference in London. ```The fundamental of this business is that it is going to grow.''

Ryanair has grown from operating a single 15-seat airplane in 1985 to being Europe's third-largest carrier by market value. The airline pioneered ``no-frills'' air travel in the region, offering flights for as little as 0.01 euro (1.3 cents), or sometimes for free, to undercut competitors.

Like other discount carriers, Ryanair makes up for low fares by charging passengers extra money for everything from snacks and drinks to checking baggage. The strategy earned it 307 million euros in the year ended March 2006, compared with 11 million euros in 1997, the year it first sold shares to the public.

Attracting Competition

Its success has attracted more than 60 low-fare airlines to operate in Europe, resulting, at least for now, in excess capacity and bruising competition. Discount carriers accounted for about 24 percent of total seating capacity in 2006, up from 6 percent in 2002, according to OAG Worldwide, a schedule publisher.

Ryanair aims to fly 52.5 million passengers this fiscal year and to double the number by 2012, overtaking Deutsche Lufthansa AG, Europe's second-largest airline, in terms of passengers.

Such vaulting ambition means it plans to nearly double its fleet to 262 jets by 2012 from 136 as of April. EasyJet, the second-largest European discount carrier, has 138 aircraft and 192 firm orders for Airbus SAS planes, with options on a further 123. Germany's Air Berlin Plc, the third-biggest, boosted its fleet to 88 planes in 2006 from 79 the year before.

``They've gone a little bit over the top in terms of expanding capacity and ordering future aircraft,'' said BGC's Wheeldon.

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Advisory services make recommendations for AirTran takeover

AirTran Airways announced Monday another boost to its aggressive takeover attempt of Midwest Airlines: Institutional Shareholder Services and Glass Lewis & Co., both advisory services, have recommended Midwest shareholders vote for AirTran's slate of directors to Midwest's board.

The Orlando-based airline is set to make its next takeover move June 14, when Midwest holds its annual meeting. Both airlines are running competing slates of three directors. If AirTran prevails, it will bring the airline a step closer to pushing through its merger plans.

Management at Midwest, however, has strongly advocated that its shareholders buy into its plan to remain a standalone company.

Source: www.orlandosentinel.com Read More..

Paramount Airways woos GoAir for buyout

GoAir reluctant to respond to overtures.

After Air India-Indian Airlines, Jet Airways-Sahara and Kingfisher-Deccan Aviation, another aviation merger is in the air. Madurai-based Paramount Airways is interested in acquiring the Mumbai-based budget carrier GoAir, promoted by the Wadia group.

Sources close to the developments said the investment bankers of Paramount Airways have expressed their interest and initiated discussions with GoAir representatives. The talks, however, have not made much headway as yet as GoAir is reluctant to move ahead.

Paramount Airways, which currently operates only in south India, has firmed up plans to enter the western region. GoAir has only four leased aircraft but Paramount is more interested in its slots, parking bays, pilots and other infrastructure, sources said.

GoAir had earlier indicated its plan to dilute 26-40 per cent equity through a private equity placement.

Paramount Airways Managing Director M Thiagarajan was not available for comment, while GoAir chief Jeh Wadia denied any such development.

“This is baseless speculation. We are going ahead with our expansion plans,” Wadia told Business Standard.

Wadia had said earlier that GoAir was working on a flexible fleet management plan to achieve growth. The airline is scheduled to receive the first of its 20 new aircraft in October. “We plan to expand our current fleet to at least 18 by March 2009 and to 34 by March 2011,” he said.

GoAir operates Airbus A320 aircraft with 180 seats, while Paramount operates Brazil’s Embraer aircraft with 60 to 90 seats.

The business models are also different for the two airlines. GoAir is a low-cost carrier competing with Air Deccan, SpiceJet and IndiGo, while Paramount Airways is positioned as a high value carrier, with only business class and first class seats. It is competing with full-service carriers such as Jet Airways and Kingfisher Airlines.

Paramount Airways is promoted by Madurai-based textile manufacturing and export house Paramount Mills, while GoAir has been floated by the Wadia group, with well known brands like Britannia and Bombay Dyeing.

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Mallya to place $1 bn order at Paris Air Show

Liquor baron Vijay Mallya, who acquired 26 per cent stake in the country’s largest budget carrier, Air Deccan, for Rs 550 crore on May 31, is still in high spirits.

The Mallya-promoted full service airline, Kingfisher Airlines, is all set to place an order for at least five wide-bodied Airbus aircraft at an estimated value of $1 billion for its international operations.

Sources close to the development said Kingfisher Airlines might opt for the world’s longest commercial passenger aircraft in operation, the Airbus A340-600, which has a seating capacity between 380 and 419 seats.

The estimated price of an A340-600 variant is over $200 million. This aircraft has a 75.3 metre overall length, while the A380 — the world’s largest airplane — is 73 metres. Kingfisher had earlier placed orders for five A380s, with an option for five more.

Besides five A380s, Kingfisher Airlines had placed orders for five A350-800s, five A340-500s and five A330s. These wide-bodied aircraft are meant for long-haul non-stop flights as well as for short-haul international services.

“Mallya, the chairman and CEO of Kingfisher Airlines, is expected to make an announcement in this regard at the International Paris Air Show scheduled to be held between June 18 and 21,” sources told Business Standard.

When asked about further orders, Mallya said, “We always reserve some news for the Paris Air Show. Wait till then.”

Sources said that post-Air Deccan acquisition, Kingfisher Airlines was planning to position itself as an international carrier and is planning to acquire more wide-bodied aircraft.

“The airline is currently reviewing the fleet structure so as to include more bigger aircraft. Kingfisher would focus more on the international routes while Air Deccan will give it a wider domestic reach as it has over 350 flights covering 65 airports,” sources said.

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A380 costs airports millions

ROISSY, France -- How will airports accommodate the world's biggest passenger jet?

At Paris' leading Charles de Gaulle airport, where the hulking Airbus A380 landed for the first time Friday, preparing for its arrival meant enlarging runways and bridges and building a new boarding lounge -- at a cost of $134 million.

Airports in San Francisco, London, Sydney, Australia, Singapore and Frankfurt, Germany, are already prepared to receive the 555-seat plane, having also spent millions. Other hubs are following suit, Airbus officials say.

The superjumbo, scheduled for delivery to airlines later this year, has been plagued by a series of scandals that have caused shares of Airbus' parent, EADS, to plunge, wiped billions of dollars off profit forecasts and set back delivery by two years.

"This airplane has created a lot of debate," Airbus Chief Executive Louis Gallois said after the glitch-free arrival in Paris. "Now we know it is here, it is beautiful, it is excellent."

Plane-spotters bedecked with cameras and telescopes lined roads near the airport to greet the A380's arrival. Two giant water cannons sprayed the plane as it taxied in at the airport, where it will remain for two days of tests before heading to Japan, Australia and Taiwan.

The superjumbo carried its "VIP" passengers -- six Parisian schoolchildren and their teacher -- from Airbus' headquarters in the southwestern city of Toulouse.

Charles de Gaulle airport's new lounge, designed to handle up to six passenger loads of A380s at the same time, will be operational by the summer.

Each plane will have three jetways, for speedier boarding. The airport has strengthened its runways and widened taxiways.

The first deliveries of the A380 are scheduled to be made in October to Singapore Airlines Ltd. Air France-KLM, the first European carrier to fly the plane, is slated to take its first delivery in April 2009.

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Virgin begins Kenya flights

British entrepreneur Richard Branson landed in Kenya on Saturday on Virgin Airlines' maiden flight to the east African country and vowed to help protect some 2,000 elephants threatened by encroachment.

The Virgin chairman said the endangered beasts were hemmed in by small farms mushrooming around Mount Kenya, stifling centuries-old migratory routes and sending some crashing across homesteads, threatening lives and damaging crops.

He said the airline would fund the construction of a safe passage to let about 2,000 elephants follow their natural path north of the snow-capped mountain.

"The African elephant has roamed across the continent from South Africa to the Mediterranean coast but its population is under serious threat," Branson told reporters gathered in a tent by the runway at Nairobi's Jomo Kenyatta International Airport.

"We can create a vital lifeline for the entire animal and human population in the region."

Kenya once boasted more than 100,000 elephants, but that number has plummeted by more than two-thirds in recent years, activists say. Human encroachment is blamed for most of that.

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Etihad starts daily Delhi-Abu Dhabi service

Etihad Airways, the national airline of the United Arab Emirates, has increased the frequency of its Delhi-Abu Dhabi flights to seven days a week with immediate effect.

'Passengers travelling from Delhi will be able to connect with onward flights to many destinations worldwide including London, New York, Toronto and Manchester,' the airline said in a statement Friday.

The Delhi-Abu Dhabi service was earlier thrice a week.

The return launch fares for Etihad's daily flights from Delhi to Abu Dhabi start from Rs.13,500 ($330) for economy, Rs.25,000 for business ($610) and Rs.35,000 ($850) for first class.

The airline had launched a new, thrice-a-week service to Thiruvananthapuram from Abu Dhabi recently, and intends to follow up this with the launch of another flight between its hub in the UAE and Kochi.

'The demand for air travel to and from India continues to grow at a phenomenal rate. Etihad is delighted to boost its Delhi flights to daily,' said R. Dougie Douglas, the airline's area manager for north India and Nepal.

In addition to Britain and North America, the Delhi route also connects well with Etihad's flights between Abu Dhabi and Paris, Brussels, Geneva, Frankfurt, Munich, Johannesburg, Cairo and Beirut, he added.

'Our Delhi flights have been scheduled to offer convenient evening departures to avoid the night time rush at the Indira Gandhi International airport,' Douglas, said, adding that passengers flying onward could reach their destinations before 9 a.m.

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