air deccan

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