Session Eight :

Case Study presentation: Creating a profitable and unique airline business model

Paramount Airways is a full-service carrier that has been modeled along the lines of a Low Cost Carrier (LCC). In some cases, it has been more aggressive than others in cutting down fares. When LCCs were the buzzword, Paramount Airways went for a full-service, business class airline. Business session eight focused on Paramount’s approach to restrict its operations to South India and adopting cost cutting measures like an LCC but still offering services of a Full Service Carrier (FSC).

Suresh Nair, Vice President of Commercial Operations, Paramount Airways, was the speaker for the session. He explained that the Airline started actually with a ‘high value carrier’ model. “We were always different in all decisions we made. Be it the choice of aircrafts or the choice of our products. When the rest of the airlines were ordering for Airbus and Boeing, we had all MRJs. We have positioned our product as a business class airline offering business class product in economy class fares,” offered Nair.

The airline offers lounge facilities and full meals aboard all its aircrafts with a choice of 16 meals on a one hour flight. They also have exclusive lounges in all destinations. “Paramount Airways provides all services offered by a FSC. Just being two and a half years old, we have been a successful airline by focusing on specific routes and providing competitive services,” added Nair.

Paramount Airways operates only in South India flying out of eight destinations. The airline has saturated the market by having greater frequencies on the same route. Their future plan is to saturate the market further by tapping new destinations in South India and again having more and more flights on those routes. Further they are looking at tapping Mumbai, Pune, Vadodra and Ahmedabad and replicate the model they are working on in South India.

“Nobody can compete with us on short sectors. We want to saturate the markets more and more and achieve monopoly. This is our strategy to move forward. Flying as many frequencies as possible, maintaining strong control over the markets and making profits is a part of our business strategy for future,” offered Nair.