Air Deccan was India's first low-cost carrier, founded in 2003 to make air travel affordable for the common man. It offered low fares using a no-frills model and was the second largest privately owned airline by 2005. However, Air Deccan struggled with a lack of financial resources and questionable on-time performance. It eventually merged with Kingfisher Airlines but continued facing challenges of high operational costs and economic slowdowns. While Capt. Gopinath revived Air Deccan in 2017, it ceased operations again following India's COVID-19 shutdown in 2020.

1. 1
Air Deccan:
Revolutionizing the
Indian Skies

2. AVIATION IN INDIA:
• Air Charter Services Pvt Ltd
• Air Charters India
• Air India
• Aviation India
• Indian Airlines
• Deccan Aviation Ltd.
• Indigo
• Paramount airways
• Go Air Airlines
• Kingfisher Airlines
• Spice Jet
• Air Sahara
• Jet Airways

3. AIR DECCAN:
• Started by Captain G.R. Gopinath in
2003.
• India’s first Low Cost Carrier.
• Referred as Common Man’s Airline.
• First airline to introduce E-Ticketing
in India.
• By November 2005 it was the 2nd
largest privately owned airline in
India.
• It expanded the size of the Aviation
pie.
• It operated 537 flights to 69 cities.
• USP- its advance booking facility

4. VISION:
Empower every Indian to fly.
MISSION:
To demystify air travel in India by providing reliable, low cost and safe travel
to the common man by constantly driving down the air fares as an ongoing
mission.

5. STRENGTHS (+)
• Cost Differentiation
• First Mover
Advantage
• Brand Equity
WEAKNESSES (–)
• Lack of financial
resources
• Questionable on-time
performance
• No previous industry
experience
OPPORTUNITIES (+)
• Growing size of the
middle class
• Air charters
• Product
Differentiations
THREATS (–)
• Indian Railways
• Over capacity
• Open Sky Policy
S
O
W
T
SWOT PUZZLE

6. EXTERNALANALYSIS OF AIR DECCAN:
Porters Industry Analysis
Threats of new entrants Bargaining power of buyers Bargaining power of suppliers
• High start up cost.
• Capital involvement.
• Government licensing
and approvals.
• Decreases in peak
season.
• More transparency.
• No control of Air traffic
Fuel Prices.
• Leased aircrafts.
• Specialized spare parts
and limited number of
manufacturers.
Threat of substitute Power of Competitors
• Superfast trains for short hault
flights
• Other airlines with low cost
strategies.

7. PESTLE ANALYSIS:
POLITICAL
• Open Sky Policy
• National and Airport Security
• Government decided fuel prices
ECONOMICAL
• Upgradation of Airport
Infrastructure
• Surcharge and Other Taxes
• Airport Authority Handling Charges
• Increase in Salary range
• International petrol prices
SOCIAL
• Growing middle class size
• Empowerment- power to fly
TECHNOLOGY
• Internet booking and boarding
passes
• High quality engine for more
efficiency

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INTERNALANALYSIS:
• Valuable
• Rare
• Imitate
• Organizational Competence & Capabilities

9. BUSINESS STRATEGY OF AIR DECCAN:
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• Offering low fares to stimulate demand
• Selecting routes to stimulate demand
• Reducing costs, increasing utilization
 Reduce the costs of its operations
 Provide a no-frills service
 Seek high aircraft utilization
• Providing a safe and on-time service
• Increasing ancillary revenues
• Routes Strategy and Network
• Cost management

11. GROWTH ANALYSIS:
1. NUMBER OF DESTINATION

12. 2. NUMBER OF FLIGHTS

13. 3. NUMBER OF PASSENGERS

14. WHAT WENT WRONG???

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REASONS FOR THE DOWNFALL OF AIR DECCAN
AIRLINES:
• Frequent Changes on Focus
• Economic Slowdown
• Lack of Management
• High Operational Cost

16. MERGER WITH KINGFISHER AIRLINES:

17. CURRENT SITUATION OF AIR DECCAN:
Capt. Gopinath acquired the rights to the name Air Deccan again, and in
2017 started as a regional operator in western India. Air Deccan bagged 34
routes under the government’s UDAN scheme that promotes regional
connectivity in the country. However, as of 2020, following India’s post-
COVID shutdown, the airline has ceased operations indefinitely.

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RECOMMENDATION:
• In addition to the alternatives we feel that the latest technology should be used
in the flights in order to be updated as there is stiff competition.
• Also other factors like better infrastructure, more regional connectivity, and
better services should be provided in order to attract customers.
• Excess capacity build-up and poor infrastructure continue to plague the industry
which is also experiencing a decline in passenger traffic at the same time.
• Improving energy efficiency of engines, developing infrastructure, increasing
regional connectivity will definitely have a positive impact on the industry.

19. CONCLUSION:
• Air Deccan was able to achieve success and earn profits despite being a low cost
carrier due to its operational efficiency and technology adoption.
• It was able to sustain its low cost model for a long period of time.
• Innovations and process optimization were the other major reasons for its
success.

20. 20
THANK
YOU