Air Deccan

BUSINESS
PROCESS
IMPROVEMENTS


AMARJEETH
12261122xx
PAWAN PUTRA
12261122XX
G. K. CHAITANYA
1226112223
R.SHIVA SHANKAR
12261122XX
R.SWATI SATHEESH
12261122XX





RAMA
KRISHNA

GOPINATHS FLIGHT
JOURNEY
1997-Launches Deccan
aviation.
2003-air Deccan
2007-mallya buys out air
Deccan
2009-deccan 360-cargo
carrier
2011-deccan 360 shuts
down
2012-deccan shuttles in
Gujarat

Value creation
cost
price
value
Company
margin
Client
margin
Value creation
Social
margin
Feedback effects




value price cost
Air Deccan business model
LEAN AND MEAN APPROACH


a single passenger class

a single type of airplane (reducing training and servicing costs)

a simple fare scheme (typically fares increase as the plane fills up, which rewards early
reservations)

free seating (which encourages passengers to board early)

direct, point to point flights with no transfers

flying to cheaper, less congested secondary airports

short flights and fast turnaround times (allowing maximum utilization of planes)

"Free" in-flight catering and other "complimentary" services are eliminated, and
replaced by optional paid-for in-flight food and drink.


cost saving characteristics that may briefly be described as
follows:

Starting with a single type of airplane with a single passenger class (reducing training
and service costs).
A dynamic fare scheme, which awards early bookings and increases fares as the plane
fills up.
Unreserved seating, encouraging passengers to board early and Quickly.
Flying to cheaper, less congested secondary airports to avoid air traffic delays and take
advantage of lower landing fees.
It Short flights and fast turnaround times to maximize utilization of planes.
Simplified routes emphasizing point-to-point transit instead of transfers at hubs.
Emphasis on direct sale of tickets, especially over the Net to avoid commissions to travel
agents.
Elimination of free catering and other complimentary services replaced by optional paid
for in-flight food and drink.
Operational strategy
Using lease & small aircrafts
Minimizing turn around times
Minimizing distribution costs
Minimizing frills
Maximizing revenue per seat

Marketing strategy
THE OLDMAN & THE SKY-FILM
CONNECTIVITY
FLEXIBILITY
CONVENIENCE
BRAND AMBASSADOR- R.K Laxmans
ADVERTISEMENTS IN ON CRAFT


Air Deccan targeted three market segments
Leisure Travelers
Business Travelers
Corporate Travelers
Air Deccan cuts cost

Quicker turnaround time
Lower distributions costs
All economy seating configuration
No free catering on board
Alternative revenue channels
100% web enabled bookings e ticketing
Offer point to point service
DISTRIBUTION

Disintermediation
Internet booking
Call center
Air Deccan's FIRSTS = INDIA's FIRSTS

India's 1stlow cost carrier
India's 1stairline to offer e-tickets to all its passengers
India's 1stairline to offer in-flight TV entertainment on the domestic flight
India's largeste-commercewebsiteRs"20million per day transactions
India's 1stairline to do internal and external India's 1st branding on aircraft
Indias only airline that flies to 9 unconnected sectors out of the total 38 sectors
India's 1stairline to use petrol pumps for ticket distribution
India's 1stairline to introduce mobile phone ticketing
India's 1stairline to introduce door-to-door ticketing
India's 1stairline to openly, challenge lowest fares
India's 1stairline to drop fares when fuel price increased
India's 1stairline to offer last minute travel discounts
India's 1stairline to offer Re1/-and Rs500/- air tickets
India's 1stairline to offer lowest fare finder on the website





T H A N K Y O U