Air Deccan Ppt

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By Saipratik Sawant

Transcript of Air Deccan Ppt

Page 1: Air Deccan Ppt

By Saipratik Sawant

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Transportation in India Transportation Mode

SEA

ROAD

RAIL

AaAIR

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Indian RailwaysCheaperReliableLarge NetworkFast Moving

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Need of better transportation service

There is monopoly in Indian railway

Poor management.

Too many bottleneck in the Rail systems.

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Why LCC needed???The world largest democracy India has a

population 1.1 bn With middle class (income over IDR 90K

p.a. estimated at 300mn in 2005 projected to hit 400mn in 2010.

15mn people travel via trains daily 7mn people a day travel by AC. If 5% of this shit to Air travel result in 40k seat per day

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In 2003 Air Deccan came to birth

This was first Low Cost Carrier of India

Cheaper than Railways 2-Tier AC

More advance than Railway system

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Retired PilotAware of economic liberalization

Started business with single Helicopter

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Capt. Gopinath founder of Air Deccan

Common Man’s AirlineTag Line “Simply fly”Logo

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High Aircraft UtilizationDynamic PricingCost reductionMarketing and promotionSales and Distribution

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Demographic factors -Large population - Fast Growing Middle Class

Economic Factor -Purchasing Power Increasing rapidly - Increasing Foreign direct investment

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Political Factors- Govt. policy help bring more tourism in India.

Socio-Culture Factors

Technological Factors -Implementing advanced technology

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For acquiring new Aircraft

25 Jan, 2006 launched IPO

25% stake in IPO

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Airlines Current Fleet Acquisition Plan Investment in US bn.

Jet Airways 53 30 by 2012 2

Air Deccan 29 79 by 2010 2.7

Kingfisher 11 100 by 2012 4.5

Spice Jet 6 38 by 2010 1.9

Go Air 4 33 by 2008 2.4

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Bargain power of

supplier is high

Trains and

luxuries buses

Vigin,Kingfisher any many more

airlines..

Bargain power of buyer is not

so high

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Merger and Acquisition

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•Dr. Vijay Mallya Chairmen and CEO of Kingfisher airlines

•Launched in 2005 by United Breweries Group

•Its metamorphosing airline business in Indian.

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• Value proportion

• It’s equipped with high technology

• First domestic airline who offered

Premium services.

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Reason For MergingThis merging leads to win-win situation: Kingfisher airline Air Deccan - International permit -For Funding -Competition with LCC - Competition with

International Player - Competition with International Player

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Re-brandingRenamed “Simply Deccan”

New logo

New tagline “The choice is simple”

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Landing time