OVERVIEW

Air Deccan, Indians first Low Cost Carrier is a Business unit of Deccan Aviation Private Ltd. Started operation in 2003. Achieved market share of 12% for Oct 2005. Operating commercial Airline in India so far has not been a profitable business. This Air craft has proven to be highly successful for its efficiency and cost effectiveness.

CONT.

Domestic travel grow at rate of around 25% and international traffic at 15% . Three pronged strategy of Air Deccan. - low cost no frills services. - focus on connecting smaller town area. - offer lowest fares

VISION
To be preferred Airline of air traveller in India.

MISSION
To demystify air travel in India by providing reliable , low cost air travel to the common man by constantly driving down the air fares as an on going mission

LOGO

CUTTING COST: BUSINESS MODEL

A Low Cost Carrier does away with traditional Airline frills. No meals on board means extra space for storage can be used to add more seats. Air Deccan take 15-20 min for ATRs. A Low Cost Airline sell through the internet and call centre. Offering low fares to stimulate demand.

ANALYSIS

Inspired by globally successful low cost model pioneered by US based South West Airlines in 1970s. Huge growth potential for LCC. Elimination of free catering and other complimentary services. AC coaches rail travellers were potential customers for Air Deccan. Cutting operational costs.

CONT

Air Deccan focus on three basic needs of travel : Connectivity Cost effectiveness Convenience Most of the ticket are sold through Internet . A lower turnaround time of 15 min from land to take off of aircraft ensure that Air Deccan can give a lower price.

MARKETING STRATEGY

Aimed at common man, encouraging him to fly. Minimized turn times and frills. Air Deccan advertised on television which considerably increased the companys ad. Hoarding and posters at airport announced the telecast times as part of pre-publicity campaign. Minimized Distribution cost.

CHALLENGES

Air Deccans website was jammed. Full Service Airlines quickly announced fare reduction on routes. Lack of infrastructure in India. Industry Shakeout and LCC Response.

CONCLUSION

The advent of Air Deccan forced the Indian Aviation Industry to become more efficient. It increased Indias GDP. It focused on common man with objective of Everyone Can Fly. Air Deccan exploited every revenue source to reduce cost.