air decan raj edicos
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PREPARED BY :HARSHIT, RAJAT, YASH & RAHUL
Transportation in India
Transportation ModeSEA
ROAD
RAIL
AaAIR
Indian Railways
CheaperReliableLarge 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
Revolution In Indian Transportation
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 Pilot
Aware of economic
liberalization
Started business with
single Helicopter
About G.R. Gopinath
Capt. Gopinath
founder of Air Deccan
Common Man’s
Airline
Tag Line “Simply fly”
Logo
Vision Of Capt. Gopinath
Segmentation:
-Geographic region -Density
Target:
-Small Business man-Middle Class
Positioning:
-Cost benefit or LCC-Quality
STP analysis
SWOT analysis
Strength:-High load efficiency-Expanding operation in Sri Lanka
Weakness:-Focus almost exclusively on South Indian Market
-Lack of funds-Limited advertisement.
Opportunity:-International Market
-Expanding tourism industry
Threats:-Indigo Airline-Spicejet and other LCC-Fuel price hike
High Aircraft Utilization
Dynamic Pricing
Cost reduction
Marketing and promotion
Sales and Distribution
Strategies adapt by Air Deccan
Demographic
factors -Large population
- Fast Growing Middle Class
Economic Factor -Purchasing Power Increasing
rapidly
- Increasing Foreign direct
investment
PEST analysis
Political Factors
- Govt. policy help bring more tourism in India.
Socio-Culture Factors
Technological Factors -Implementing advanced technology
Cont…..
For acquiring new
Aircraft
25 Jan, 2006
launched IPO
25% stake in IPO
Expansion of Air Deccan
Market Shares
Porter 5 force analysis on Air Deccan
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
The Company is now India’s largest private air charter company including Sri Lanka. In 2003 he launched India's first low-cost airline, Air Deccan at the time of its 2007 purchase by Kingfisher Airlines, Air Deccan connected sixty nine cities around India.
Deccan Charters
Today Captain Gopinath is focusing on Deccan Charters and has forayed into the Cargo and Express Logistics business.
Merge:
• Value proportion
• It’s equipped with high technology
• First domestic airline who offered
Premium services.
Reason For Merging
This 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-branding
Renamed “Simply Deccan”
New logo
New tagline “The choice is simple”
Decan 360 :Deccan Express Logistics will be the first
Indian company to create a hub and spoke distribution model in the express package industry in India. It will connect not only the major metropolitan areas but also the Tier-I and Tier-II cities to India’s trade network.[Re named as Deccan Cargo and Express Logistics Pvt. Ltd.(DCEL) in 2007-2008, has been ordered to wind up by the Karnataka High Court in a recent order based on petitions — one filed by Dubai-based United Aviation Services (UAS) and another by M/s Patel Integrated Logistics (PIL) Pvt. Ltd. seeking recovery of amounts due to them by winding up the company.
Future
Captain Gopinath is planning a new airlines once non-compete act between Vijay Mallya’ s Kingfisher Airlines and him ends on 28 January 2013. Many foreign players have shown interest in his project and ready to buy 49% stake, under FDI, in his new venture. He has already applied for the license to Aviation ministry.
Landing time…!! Thanks a l t.
Harshit, Rajat, Rahul & Yash
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