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    Deccan Project

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    Shukla Jinesh
    Air Deccan was India's first low-cost airline, starting operations in 2003. It offered low fares and no-frills service to leisure, business, and corporate travelers. Air Deccan grew rapidly using a fleet of ATR and Airbus aircraft on 52 domestic routes. Through advertising and partnerships, it positioned itself as an affordable option and carried over 4 million passengers annually, becoming the second largest domestic airline in India with a 14.2% market share. While successful in expanding access to air travel, Air Deccan faced challenges in fleet size, employee training, and airport infrastructure to support its low-cost model.

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    Deccan Project

    Uploaded by

    Shukla Jinesh
    236 views17 pages
    Air Deccan was India's first low-cost airline, starting operations in 2003. It offered low fares and no-frills service to leisure, business, and corporate travelers. Air Deccan grew rapidly using a fleet of ATR and Airbus aircraft on 52 domestic routes. Through advertising and partnerships, it positioned itself as an affordable option and carried over 4 million passengers annually, becoming the second largest domestic airline in India with a 14.2% market share. While successful in expanding access to air travel, Air Deccan faced challenges in fleet size, employee training, and airport infrastructure to support its low-cost model.

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    Air Deccan was India's first low-cost airline, starting operations in 2003. It offered low fares and no-frills service to leisure, business, and corporate travelers. Air Deccan grew rapidly using a fleet of ATR and Airbus aircraft on 52 domestic routes. Through advertising and partnerships, it positioned itself as an affordable option and carried over 4 million passengers annually, becoming the second largest domestic airline in India with a 14.2% market share. While successful in expanding access to air travel, Air Deccan faced challenges in fleet size, employee training, and airport infrastructure to support its low-cost model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    236 views17 pages

    Deccan Project

    Uploaded by

    Shukla Jinesh
    Air Deccan was India's first low-cost airline, starting operations in 2003. It offered low fares and no-frills service to leisure, business, and corporate travelers. Air Deccan grew rapidly using a fleet of ATR and Airbus aircraft on 52 domestic routes. Through advertising and partnerships, it positioned itself as an affordable option and carried over 4 million passengers annually, becoming the second largest domestic airline in India with a 14.2% market share. While successful in expanding access to air travel, Air Deccan faced challenges in fleet size, employee training, and airport infrastructure to support its low-cost model.

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    of 17

    Group Presentation MARKETING

    AIR DECCAN

    The Story of Indias First Low Cost Airline

    AIR DECCAN

    Aviation Industry in India


    Before 1953 - The History Feb-1911 A distinct Start - First Flight by Aero plane piloted by French Pilot Mr. Picquet Flewfrom Allahabad to Naini In Oct-1932 - Own Airlines Tata Sons Ltd.( later converted into Air India international) 1933 Indian National Airways and 1937 Air Service of India (1953-1990) The era of Govt. Dominance Strict Interference by Govt. of India through Air Corporation Act, 1953 Nine Existing AIR Companys Assets transferred to TWO DOMINANT Players INDIAN AIRLINES, Primarily serving Domestic Sector

    AIR INDIA INTERNATIONAL serving International Sector


    (1990-1993) Semi Liberalized Govt. Policy Private Sectors allowed to operate as Air Taxi Operator but not in Scheduled Services New Entrances Jet, Air Sahara, Modiluft, Dalmiya Airways, AEPC Airlines, East West Airlines (1994-2004) Fully Liberalized Govt. Policy
    Air Corporation Act Repealed - Pvt. Carriers allowed to operate in Scheduled Services
    Only Two continued Jet & Sahara August 2003 AIR DECCAN Ventured into Scheduled Services 2005 Four New entrances Spice Jet, Go Air, Kingfisher and Paramount

    Aviation Industry in India (Cont)

    Recent Development in Aviation Industry:

    Naresh Chandra Committee Report Road Map for Civil Aviation Sector Domestic Air Lines being Allowed to Fly Overseas

    Emergence of no Frills Airlines

    Present Key Industry Characteristics

    Highly under penetrated Market (Average Air Travel is 0.014 trips per person

    per year against 2.02 trips per person per year in US)
    High fixed cost operating environment (High fuel charges as compare to International Airlines) Regulatory and Infrastructure constrains Relatively limited reach across the country

    Aviation Industry in India (Cont)


    What are the Sector operating in Industry? What are the Key Demand Drivers?
    High Economic Growth Increasing Consumerism and Affordability Growth in Tourism

    Air Cargo

    NonScheduled

    Domestic

    International

    What is the Growth in Domestic Sector over the last eight years?
    20
    Passnegers in Millions

    19.9 15.7 11.2 11.55 12 12.7 13.7 12.8 13.9

    15 10 5 0 7991 8991 9991 0002

    1002
    Year

    2002

    3002

    4002

    5002

    Deccans Entry in Aviation Sector


    Commenced operation as chartered aircraft service provider in 1997 Initially Helicopter service

    2001 it added first fixed-wing aircraft


    2003 got permission to operate in Scheduled sector Currently operates in two segments: Non-Scheduled Sector No. of Helicopters

    10

    No. of Fixed-wing Aircraft


    Scheduled Sector
    Air Craft Type ATR No. of Passengers 48 48 72 Airbus 180 Model 42-320 42-500 72-500

    12

    No. of Air Craft 5 9 4 11

    Avg. Age in years 12 8.56 3 3

    A320-200

    Competitive Landscape in Domestic Sector


    Particulars Year of Operation Description
    AIR DECCAN

    Jet Airways 1995


    Pvt. Full service carrier operates on domestic and selected international route

    Air Sahara 1996


    Pvt. Full service carrier operates on domestic and selected internationa l route

    Indian Airlines 1953


    Govt. Airline operates on Domestic as well as Internatio nal route

    Spice Jet 2005


    Pvt. Low Cost Airline operates on domestic route

    Kingfishe r 2005
    Pvt. Airline operates on domestic route

    Go Air 2005
    Pvt. Low Cost Airline operates on domestic route

    Paramou nt 2005
    Pvt. Airline operates on domestic route

    2003
    Pvt. Low Cost Airline operates on domestic route

    Fleet Size Fleet type

    29 ATR 42, 72 and Airbus A320

    53 Airbus 340, Boeing 737 and ATR 72 43 306

    27 Boeing 737 and CL 600

    70 Airbus A300 A320 and Dornier D-228 58 294

    5 Boeing 737

    9 Airbus A320

    2 Airbus A320

    1 Embraer

    No. of Domestic Destination No. of Domestic Flights

    52 226

    24 134

    11 67

    15 88

    15 28

    6 17

    Competitive Strength
    New Business Model:
    No Frills, low-cost Business Model. It includes
    Low Fares

    More choice for selecting Routes


    Reduced cost High air-craft utilization Ancillary services

    Strength
    First Mover Advantage Simplyfly! Strong Management Team Load Factor and Yield Management by Dynamic Pricing

    Consumer Behaviour

    Targeting and Positioning


    Targeting
    Targeted Three Market segment
    Leisure Travelers Business Travelers Corporate Travelers

    Positioning as a low cost carrier


    Offers no in-flight service Single class aircraft configuration Internet booking and cheap fares

    Marketing Strategy & Branding


    Strong focus on Low Fare Communicates value proposition through public relations, advertising, direct marketing, internet. Emphasis on fly made possible and better lifestyle through Air travel To convey messages it used R.K.Laxmans Celebrated Indian Mascot the Common Man as its Brand Ambassador Offers ticket package called Value Flier to the Leisure Customers Advertised through Print, Radio and billboards and to the lesser extent Television

    Marketing Strategy & Branding


    Advertising Agreement with Bennet, Coleman & Co. Ltd. to advertise through print media for four years. In-flight Magazine for revenue generating. In-flight Shopping Scheme called Brand for Less - AVA Merchandising In-flight Advertising Cutting Edge Media Tie-up with Cafe Coffee Day

    Flight Fare Comparison


    Place Mumbai-Bangalore Mumbai-Delhi Mumbai-Chennai Delhi-Bangalore Delhi-Mumbai Delhi-Chennai Chennai-Bangalore Chennai-Mumbai Chennai-Delhi Bangalore-Chennai Bangalore-Mumbai Bangalore-Delhi Deccan Air Economy Class 2224 2024 1724 7274 2024 4749 824 3278 3224 1249 1524 5424 Spice Jet Economy Class 2399 2599 2799 7399 2899 5799 1399 3199 4499 1199 2699 6499 Go Air Economy Class 3100 3400 3600 N.A. 3200 5900 N.A. N.A. 3900 N.A. N.A. N.A. Air India Economy Class 2962 3171 3335 N.A. N.A. N.A. 1481 N.A. N.A. 2962 3171 3335

    Selling and Distribution Strategy


    Centralized Reservation System (CRS) Direct Selling:
    Internet Booking System (approx. 31% of the ticket Booking) 24/7 Call centre (approx. 9% of the ticket Booking) Airport Desk (approx. 11% of the ticket Booking)

    Indirect selling: (approx. 47% of the ticket Booking)


    Conventional & Non-Conventional Travel Agents

    ICICI-Air Deccan-travel agent purchase card Tie-ups with the HPCL and Reliance Web World

    Result
    Carried Aprox. 4.1 million passengers Expanded its fleet to 29 aircraft 226 Flights daily
    Flight Route for 52 Airports Market Share of 14.2% (present 21%, Second Largest airlines) Lowest EPA of 76
    Air Sahara, 9.7 Air Deccan, 14.2

    Spice Jet, 6.1

    Kingfisher, 7.8 Jet Airways, 36.1

    Go Air, 1.8 Paramount, 0.3

    Indian Airlines, 23.9

    Area of Improvement
    In-flight Infrastructure should be upgraded. Proper seat allocation to the passengers. Proper training and education should be provided to the existing employees. Need to increase number of pilots. Need to arrange for more departure gate.

    Thanks
    If its on the map, we will get you there---Air Deccan

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