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