air deccan ppt
TRANSCRIPT
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By Saipratik Sawant
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Transportation in India Transportation Mode
SEA
ROAD
RAIL
AaAIR
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Indian RailwaysCheaperReliableLarge NetworkFast Moving
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Need of better transportation service
There is monopoly in Indian railway
Poor management.
Too many bottleneck in the Rail systems.
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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
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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
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Retired PilotAware of economic liberalization
Started business with single Helicopter
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Capt. Gopinath founder of Air Deccan
Common Man’s AirlineTag Line “Simply fly”Logo
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High Aircraft UtilizationDynamic PricingCost reductionMarketing and promotionSales and Distribution
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Demographic factors -Large population - Fast Growing Middle Class
Economic Factor -Purchasing Power Increasing rapidly - Increasing Foreign direct investment
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Political Factors- Govt. policy help bring more tourism in India.
Socio-Culture Factors
Technological Factors -Implementing advanced technology
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For acquiring new Aircraft
25 Jan, 2006 launched IPO
25% stake in IPO
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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
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Bargain power of
supplier is high
Trains and
luxuries buses
Vigin,Kingfisher any many more
airlines..
Bargain power of buyer is not
so high
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Merger and Acquisition
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•Dr. Vijay Mallya Chairmen and CEO of Kingfisher airlines
•Launched in 2005 by United Breweries Group
•Its metamorphosing airline business in Indian.
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• Value proportion
• It’s equipped with high technology
• First domestic airline who offered
Premium services.
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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
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Re-brandingRenamed “Simply Deccan”
New logo
New tagline “The choice is simple”
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Landing time