The Rise and Fall of Captain G.R.Gopinath
Group-2Abhimanyu Maheshwari-109
Prannoy Pillai-114Jaineet Sethi-117
Pranisha Shetty-118Sujay Gokhale-119
Early Life
Born in 1951 Gorur, Hassan, Karnataka
Schooling:- Kannada Medium till the 5th Standard- Sainik School Bijapur- NDA Pune
Career:- Spent 8 years in the Army- Sericulture Farm- Hotel in Hassan- Helicopter Company – Deccan
Aviation
AN AIRLINE THAT CHANGED THE WAY PEOPLE FLEW
Mantra
”It is not enough to have a dream, you need to
be possessed by it. Especially when the idea is
absurd for the others”
Air Deccan
• A flying experience that led to the Deccan dream
• Identified that he may have audience for his dream
while flying over Goa and Assam
• His then ‘absurd’ idea made him the first entrepreneur
for the poor flyers
• Air Deccan finally started in 2003 to make sure
everyone flies once in their lifetime
How Air Deccan was different?
• First airline to target Tier-2 cities and religious places
• Capt. Gopinath leveraged his business with the elimination of agents
• E-ticketing and call centre bookings were introduced
• Decision to launch an IPO and get listed on the NSE to be able to expand further
From Deccan to Kingfisher Red
The Changing Phase of Deccan
• Rising Competiton: Many foreign carriers• Rising Cost: Rising ATF prices• Fall in Demand: Recession• Cheaper Alternatives:Railway & Road
Transport• Bargaining Suppliers: Airbus and Boeing• Bargaining Consumers: No loyalty
The Deal in Numbers
• On June 1st 2007, Board of Air Deccan approved the allotment of equity shares of 26% to UB Group and it’s nominees. The shares were allotted at Rs. 155 per share approximately at 10% premium for the current market price.
Where did our Captain go wrong?
• Problems of micro management
• Mucked-up operations• Poor organization
structure/ processes• Slow responses to
external change
The Vision The Strategy The Challenge
He wants to kill time and distance
To expand express cargo to more locations, small towns, small industrial clusters, far flung farms
Hub and spoke model. One hub at Nagpur, Maharashtra
He invested close to Rs. 35 crore in an IT system, that’s designed to help the company reduce costs .
Manage air operations with an infrastructure that’s not designed to handle volumes
Connect the IT systems to the franchisees, customers, hub and its own offices - and software on site, in real time
Deccan 360
Deccan 360 faces turbulence
Trickle-down entrepreneurship Where are the customers?
Blind men and the elephant
Intrinsic factors
Costs grew faster than revenues
Extrinsic factors
Overcoming recession
Volatile fuel prices
Competition
Lack of lucrative tie-ups
Future Ventures
• Deccan Shuttles in Gujarat• New airline which connects small towns-
Revival of the dream?• Run in with the Aviation Ministry ,SEBI and
the Banks.
Awards and Honours
• 1996 - Rolex Awards for Enterprise• 2005 - Rajyotsava Award (Karnataka)• 2007 - Chevalier de la legion d’Honneur
(France)• Personality of the Decade Award (K.G.
Foundation)• Sir M Visvesvaraya Memorial Award (Federation
of Karnataka Chambers of Commerce & Industry)
Thank You for bearing with us
