group 3 deccan

7/31/2019 Group 3 Deccan

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GROUP 3,

ARUN S

KRISHNA PRASHOBH

SIBIN JAMES

VINOD K S


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Air Deccan

Air Deccan was the largest private low cost

carrier in India.

Air Deccan launch in 2003, had grown serving

from 2 destination to 65 destination in 2007. The vision of Air Deccan is empowering every

Indian to fly

New airlines were increasingly differentiatingthere services and took a cautious approach to

market expansion.


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Indian aviation market

Indian aviation sector deregulated in 1994.

The demand for air travel India is mainly driven

by leisure/visiting, friends and relatives.

The airport infrastructure in the country was notable to keep up with the growth in air traffic.

Increase in air traffic also led to a corresponding

increase in the demand of pilots. There was a lack of maintenance and repair

facilities in inida.


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Cont.

The main problem in the sector is high tax rate

on aviation turbine fuel.

Aviation accounted for 40% of total operating

cost. DAL was launched in 1997 by captain gopinath.

By 2007 air Deccan held close to the 20%

domestic aviation market.


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Targeted market

Classification of the passengers

Growth of business sectors

Concept of no frills

Marketing technique

Advertising, news paper


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Pricing system

Basis on the time booking

Tickets were priced 40% lower

No 3rd party operations were carried

Development of ccrs

Route selection


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The human resource of Air Deccan veryharsh to the employees.

It provided limited perks to its employees.

Air Deccan pilots stayed in companymaintained guest houses and transit houses.

Meritorious employees were promoted tosupervisory positions and positions inmanagement or as trainers.

The work force was non-unionized.

HUMAN RESOURCES


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Indian.

Jet Airways. Air Sahara.

Kingfisher airlines.

COMPETITORS(FSC Segment)


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Spice jet.

Indigo airlines.

Go air.

COMPETITORS(low cost

players)


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It was not able to get attractive landing slots atbusy metro airports as compared to the newerairlines.

Also the media was not favorable to the airline.

Passengers problem with last minutecancellations.

The company had to invest heavily in engineering,

tooling and equipment. Due to its policy of outsourcing ground handling,the airline appointed many-handling agents whodid not have any previous experience.

Air Deccan in 2007


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In Feb, 2007, the chief Financial Officer

(CFO) who was with Air Deccan since

1997 resigned.

However by early 2007 differences

between Gopinath and Brady over route

rationalization led to Brady's departure.

Some of the decisions taken by Brady

were overturned and some were taken

without the Knowledge of the top

management.


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Infrastructure bottlenecks

Difficulty in infrastructure comparing to

other airlines

Examples like;

3 years to get a land in Chennai

Purchase of Porta-cabin

Parking space

Bird hits on air crafts


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Initial public offer

Raise Rs3730 million through thee book

building method, at Rs 146 per share

Extended issuing date to 3 days and

oversubscribed by 1.23 times.


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pricing

Lowest possible levels for Indian

passengers

30% of the passengers were first time

travelers and losing 500 to 1100 seats.


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future

Acquisition by King Fisher

Increase the fare


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conclusion

Decisions by Vijay mallya,

Merge Air deccan with King Fisher

Make air deccan subsidiary Maintain status quo and harvest


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THANK YOU

group 3 deccan

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