deccan project
TRANSCRIPT
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Group PresentationMARKETING
AIR DECCAN
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AIR DECCANThe Story of Indias First Low Cost Airline
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Aviation Industry in India
Before 1953 - The History
Feb-1911A distinct Start - First Flight by Aero plane piloted by French Pilot Mr. Picquet
Flewfrom Allahabad to Naini
In Oct-1932 - Own AirlinesTata Sons Ltd.( later converted into Air India international)
1933Indian National Airways and 1937Air 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 INTERNATIONALserving International Sector
(1990-1993)Semi Liberalized Govt. Policy
Private Sectors allowed to operate as Air Taxi Operator but not in Scheduled Services
New EntrancesJet, 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Air Corporation Act Repealed - Pvt.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 continuedJ et & Sahara
August 2003AIR DECCAN Ventured into Scheduled Services
2005Four New entrancesSpice J et, Go Air, Kingfisher and Paramount
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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
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Aviation Industry in India (Cont)
11.2 11.5512
12.713.7
12.813.9
15.7
19.9
0
5
10
15
20
7991 8991 9991 0002 1002 2002 3002 4002 5002
Year
PassnegersinMillions
What are the Sector operating in Industry?
Domestic
International
Non-
Scheduled
Air Cargo
What is the Growth in Domestic Sector over the last eight years?
What are the Key Demand Drivers?
High Economic Growth Increasing Consumerism and Affordability
Growth in Tourism
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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:
311A320-200180Airbus
3472-50072
8.56942-50048
12542-32048ATR
Avg. Age in
years
No. of Air CraftModelNo. of
Passengers
Air Craft Type
Non-Scheduled Sector
Scheduled Sector
12No. of Fixed-wing Aircraft
10No. of Helicopters
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Competitive Landscape in Domestic Sector
EmbraerAirbus
A320
Airbus
A320
Boeing
737
Airbus
A300A320
and
Dornier
D-228
Boeing
737 andCL600
Airbus
340,Boeing
737 and
ATR 72
ATR 42, 72
and AirbusA320
Fleet type
Pvt. Airline
operates on
domestic
route
Pvt. Low
Cost
Airline
operates
on
domesticroute
Pvt. Airline
operates on
domestic
route
Pvt. Low
Cost
Airline
operates
on
domesticroute
Govt.
Airline
operates
on
Domestic
as well asInternatio
nal route
Pvt. Full
service
carrier
operates on
domestic
andselected
internationa
l route
Pvt. Full
service
carrier
operates on
domestic
and selectedinternational
route
Pvt. Low Cost
Airline
operates on
domestic
route
Description
17288867294134306226No. of DomesticFlights
615151158244352No. of Domestic
Destination
129570275329Fleet Size
20052005200520051953199619952003Year of Operation
ParamountGo AirKingfisherSpiceJetIndianAirlinesAirSaharaJetAirways
AIR DECCAN
Particulars
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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
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Consumer Behaviour
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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
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Marketing Strategy & Branding
Strong focus on Low Fare
Communicates value proposition through public relations,
advertising, direct marketing, internet.
Emphasis on fly made possibleand better lifestylethrough Air travel
To convey messages it used R.K.Laxmans Celebrated
Indian Mascot the Common Manas its Brand Ambassador
Offers ticket package called Value Flierto the LeisureCustomers
Advertised through Print, Radio and billboards and to the
lesser extent Television
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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 - AVAMerchandising
In-flight AdvertisingCutting Edge Media
Tie-up with Cafe Coffee Day
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Flight Fare Comparison
Place Deccan Air Spice Jet Go Air Air India
Economy Class Economy Class Economy Class Economy Class
Mumbai-Bangalore 2224 2399 3100 2962
Mumbai-Delhi 2024 2599 3400 3171
Mumbai-Chennai 1724 2799 3600 3335
Delhi-Bangalore 7274 7399 N.A. N.A.
Delhi-Mumbai 2024 2899 3200 N.A.
Delhi-Chennai 4749 5799 5900 N.A.
Chennai-Bangalore 824 1399 N.A. 1481
Chennai-Mumbai 3278 3199 N.A. N.A.
Chennai-Delhi 3224 4499 3900 N.A.
Bangalore-Chennai 1249 1199 N.A. 2962
Bangalore-Mumbai 1524 2699 N.A. 3171
Bangalore-Delhi 5424 6499 N.A. 3335
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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
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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 Deccan, 14.2
Spice Jet, 6.1
Kingfisher, 7.8
Go Air, 1.8Paramount, 0.3
Indian Airl ines,
23.9
Jet Airways, 36.1
Air Sahara, 9.7
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Area of Improvement
In-flight Infrastructure should be upgraded.
Proper seat allocation to the passengers.
Proper training and education should be providedto the existing employees.
Need to increase number of pilots.
Need to arrange for more departure gate.
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ThanksIf its on the map, we will get you there---Air Deccan
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