AIR DECCAN :CHANGING

THE FACE OF INDIAN

AVIATION

Presented By-

Anusha
Archana
Lohitha
Sravan
Sravya
Srinivas
Vamsi
MR.GORUR RAMASWAMY GOPINATH
 A graduate from Indian’s National Defence Academy .
 In 1978: retired from Indian Army.
 In 1996: Won Rolex International Award for eco-farming.
 In 1995 :Teamed wit captain K.J. Samuel to set up a heli
-charter service .
 In 2000: Deccan Aviation Private Limited (DAPL) has become
India’s largest heli-charter company.
 In 2002: he pooled Rs 480 millions from angel investors.
: leased 48-seater ATR turboprop aircraft.
 In 2003: Air Deccan was ready with commercial air
passenger operating in single route (Banglore-Hubli).
Vision :
Empower every Indian to fly

Mission :
To demystify air travel in India by
providing reliable, low cost and safe travel
to the common man by constantly driving
down the air fares as an ongoing mission
Air Deccan
It begins its operations: August 2003
Low, variable fare, no frills, only economy
class
connectivity to unconnected towns and cities.
Was acquired by Kingfisher and later renamed
Kingfisher Red .
 Air Deccan’s targeting

Corporate (middle-level employees), small

and medium enterprises (SMEs),
AC/ Second class travelers (middle class)
of Indian Railways. This can be again
divided into two parts:
(a) Travelers who dream to travel by air at
least once in their life time
(b) Travelers who care about time but
couldn’t afford the price which was being
charged by the full service airline.
Indian Aviation Market

1995: 6 private carriers were given license

all full service airlines(FSA)
Jet airways & Air Sahara have only
survived now.
2003: Indian Airlines- domestic sector.
: Air India – international sector.
:operating since 1953.
Conducive Indian Aviation
Vast airport infrastructure .
Relied on short haul routes.
Aviation Industry in India :
Characteristics

Huge potential for expansion.

500 commercial flights a day.
Targeted a market of 50 million passengers by
2010.
3rd largest market in Asia for new aircraft .
Do me st ic Avi at ion Mar ket Sh are – Apr il 2009

Source : http://en.wikipedia.org/wiki/File:Indianairmarketsare.png
Competition
The existing airline carriers though they did
not operate on low-cost.

Air Deccan’s main competitor is the Indian

Railways

It wanted to capture the top end of rail and

road travel in India
Customers
Air Deccan wanted to target three market
segments

Leisure Travelers

Business Travelers

Corporate Travelers
How Air Deccan cuts cost?
• Quicker turnaround time
• Lower distributions costs
• All economy seating configuration
• No free catering on board
• Alternative revenue channels
• 100% web enabled bookings – e ticketing
• Offer point to point service
Marketing Strategy
Common Man :
The Brand Ambassador for Air Deccan, the
people’s airline is Mr. R.K Laxman’s ‘Common
Man’

Free Tickets :
Contd…
Advertising

Brand name

Promise of low fare to costumers

Tie up with HCL-Technologies

PRICING

•Pricing slightly below the fares of existing full

service carriers.

•Two tiers of pricing.

•Pricing at some middling level

DISTRIBUTION
Disintermediation

Internet booking

Call center
Marketing Alliances
Teamed up with Bennett Coleman & Co

Jigrahak Mobility Solutions

Hyderabad Aircraft Maintenance Company

(HAMC)
SWOT Analysis
Strengths
Leader in LCC.
Targeted the middle class.
High seating capacity
Advance planning
SWOT Analysis
Weakness
High cost cutting
With one air hostess no prill service is
provided.
It concentrated mostly on south India routes.
SWOT Analysis
Opportunities
No central competition.
Expansion of its network(routes).
High frequency of flights.
SWOT Analysis
Threats
High risk
New entries into low cost segment
(eg: GOAIR, INDIGO).
No commission to external agents.
Conclusion