Air Deccan

AIR DECCAN :CHANGING THE FACE OF INDIAN AVIATION Presented ByAnusha 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