PREPARED BY :HARSHIT, RAJAT, YASH & RAHUL

Transportation in India

Transportation ModeSEA

ROAD

RAIL

AaAIR

Indian Railways

CheaperReliableLarge NetworkFast Moving

Need of better transportation service

There is monopoly in Indian railway

Poor management.

Too many bottleneck in the Rail systems.

Why LCC needed???The world largest democracy India has a

population 1.1 bn With middle class (income over IDR 90K

p.a. estimated at 300mn in 2005 projected to hit 400mn in 2010.

15mn people travel via trains daily 7mn people a day travel by AC. If 5% of this shit to Air travel result in 40k seat per day

Revolution In Indian Transportation

In 2003 Air Deccan came to birth

This was first Low Cost Carrier of India

Cheaper than Railways 2-Tier AC

More advance than Railway system

Retired Pilot

Aware of economic

liberalization

Started business with

single Helicopter

About G.R. Gopinath

Capt. Gopinath

founder of Air Deccan

Common Man’s

Airline

Tag Line “Simply fly”

Logo

Vision Of Capt. Gopinath

Segmentation:

-Geographic region -Density

Target:

-Small Business man-Middle Class

Positioning:

-Cost benefit or LCC-Quality

STP analysis

SWOT analysis

Strength:-High load efficiency-Expanding operation in Sri Lanka

Weakness:-Focus almost exclusively on South Indian Market

-Lack of funds-Limited advertisement.

Opportunity:-International Market

-Expanding tourism industry

Threats:-Indigo Airline-Spicejet and other LCC-Fuel price hike

High Aircraft Utilization

Dynamic Pricing

Cost reduction

Marketing and promotion

Sales and Distribution

Strategies adapt by Air Deccan

Demographic

factors -Large population

- Fast Growing Middle Class

Economic Factor -Purchasing Power Increasing

rapidly

- Increasing Foreign direct

investment

PEST analysis

Political Factors

- Govt. policy help bring more tourism in India.

Socio-Culture Factors

Technological Factors -Implementing advanced technology

Cont…..

For acquiring new

Aircraft

25 Jan, 2006

launched IPO

25% stake in IPO

Expansion of Air Deccan

Market Shares

Porter 5 force analysis on Air Deccan

Bargain power of

supplier is high

Trains and

luxuries buses

Vigin,Kingfisher any many more

airlines..

Bargain power of buyer is not

so high

Merger and Acquisition

The Company is now India’s largest private air charter company including Sri Lanka. In 2003 he launched India's first low-cost airline, Air Deccan at the time of its 2007 purchase by Kingfisher Airlines, Air Deccan connected sixty nine cities around India.

Deccan Charters

Today Captain Gopinath is focusing on Deccan Charters and has forayed into the Cargo and Express Logistics business.

Merge:

• Value proportion

• It’s equipped with high technology

• First domestic airline who offered

Premium services.

Reason For Merging

This merging leads to win-win situation:

Kingfisher airline Air Deccan - International permit -For Funding -Competition with LCC - Competition with

International Player - Competition with International Player

Re-branding

Renamed “Simply Deccan”

New logo

New tagline “The choice is simple”

Decan 360 :Deccan Express Logistics will be the first

Indian company to create a hub and spoke distribution model in the express package industry in India. It will connect not only the major metropolitan areas but also the Tier-I and Tier-II cities to India’s trade network.[Re named as Deccan Cargo and Express Logistics Pvt. Ltd.(DCEL) in 2007-2008, has been ordered to wind up by the Karnataka High Court in a recent order based on petitions — one filed by Dubai-based United Aviation Services (UAS) and another by M/s Patel Integrated Logistics (PIL) Pvt. Ltd. seeking recovery of amounts due to them by winding up the company.

Future

Captain Gopinath is planning a new airlines once non-compete act between Vijay Mallya’ s Kingfisher Airlines and him ends on 28 January 2013. Many foreign players have shown interest in his project and ready to buy 49% stake, under FDI, in his new venture. He has already applied for the license to Aviation ministry.

Landing time…!! Thanks a l t.

Harshit, Rajat, Rahul & Yash