In a significant move, the South India-based airline, Paramount Airways, placed a $1.5 billion order for buying 10 Airbus A-321 aircraft, each of them costing over $90.3 million.

Confirming the development, M. Thiagarajan (MD, Paramount Airways) said: “This agreement marks a strategic landmark in our expansion plans and in particular to our goal to become a leading international carrier. The A-321 will help us realise these goals and we are happy with our choice of aircraft.”

Thiagarajan further added that the $1.5-billion deal would be funded by the European Central Bank.

Speaking on this, Miranda Mills, Vice-President, Airbus said: “We signed a memorandum of understanding (MoU) with Paramount Airways for confirmed orders for 10 A-321s with an option for 10 more.”

At present, Paramount's fleet comprised aircraft from Brazilian manufacturer Embraer.

The deliveries of A-321 aircraft would commence from October 2010 in a phased manner to facilitate the airline to board on international routes from India to Southeast Asia, West Asia, Far East and the Gulf region.

The Chennai- based airline is known in the domestic market by flying smaller aircraft as compared to other airlines operating with 150-180 seats.