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