Air Deccan Ppt
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Transcript of Air Deccan Ppt
By Saipratik Sawant
Transportation in India Transportation Mode
SEA
ROAD
RAIL
AaAIR
Indian RailwaysCheaperReliableLarge NetworkFast Moving
Need of better transportation service
There is monopoly in Indian railway
Poor management.
Too many bottleneck in the Rail systems.
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
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
Retired PilotAware of economic liberalization
Started business with single Helicopter
Capt. Gopinath founder of Air Deccan
Common Man’s AirlineTag Line “Simply fly”Logo
High Aircraft UtilizationDynamic PricingCost reductionMarketing and promotionSales and Distribution
Demographic factors -Large population - Fast Growing Middle Class
Economic Factor -Purchasing Power Increasing rapidly - Increasing Foreign direct investment
Political Factors- Govt. policy help bring more tourism in India.
Socio-Culture Factors
Technological Factors -Implementing advanced technology
For acquiring new Aircraft
25 Jan, 2006 launched IPO
25% stake in IPO
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
Bargain power of
supplier is high
Trains and
luxuries buses
Vigin,Kingfisher any many more
airlines..
Bargain power of buyer is not
so high
Merger and Acquisition
•Dr. Vijay Mallya Chairmen and CEO of Kingfisher airlines
•Launched in 2005 by United Breweries Group
•Its metamorphosing airline business in Indian.
• Value proportion
• It’s equipped with high technology
• First domestic airline who offered
Premium services.
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
Re-brandingRenamed “Simply Deccan”
New logo
New tagline “The choice is simple”
Landing time