air deccan
TRANSCRIPT
AIR DECCAN :CHANGING THE FACE OF INDIAN AVIATION
Presented By-
AnushaArchanaLohithaSravanSravya
SrinivasVamsi
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 2003Low, variable fare, no frills, only economy
classconnectivity 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 AviationVast 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 .
Domestic Aviation Market Share – April 2009
Source : http://en.wikipedia.org/wiki/File:Indianairmarketsare.png
CompetitionThe 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
Route Jet
AirwaysIndian
AirlinesAir
DeccanRailway I class
AC
Railway II class
AC
Banglore-Hyderaba
d
Mumbai-Goa
Chennai-Banglore
4196
3089
2935
4200
3044
2593
2120
1905
1566
2041
2093
1251
1081
1099
667
CustomersAir 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
DISTRIBUTIONDisintermediation
Internet booking
Call center
Marketing AlliancesTeamed up with Bennett Coleman & Co
Jigrahak Mobility Solutions
Hyderabad Aircraft Maintenance Company (HAMC)
SWOT AnalysisStrengthsLeader in LCC.Targeted the middle class.High seating capacityAdvance planning
SWOT AnalysisWeaknessHigh cost cuttingWith one air hostess no prill service is
provided.It concentrated mostly on south India routes.
SWOT AnalysisOpportunitiesNo central competition.Expansion of its network(routes).High frequency of flights.
SWOT AnalysisThreatsHigh riskNew entries into low cost segment (eg: GOAIR, INDIGO).No commission to external agents.
Conclusion