Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 18 pages
Data source: Published sources
Topics:
Low cost carriers (LCCs); No-frills service; Traditional network carriers; Global civil aviation; Profitability vs expansions; Value chain analysis; Load factor and capacity utilisation; Operation efficiencies; Cost structure analysis; Price wars; Financial crunch; Competition; Business model; Industrial constraints; GR Gopinath
Abstract
This is the first of a three-case series. The case study tracks the journey of Air Deccan, a pioneer low-cost carrier (LCC) in the Indian skies since 2003. With a passion for reaching out to the common man and a vision of making every Indian fly, Captain GR Gopinath built Air Deccan - blending his experience in aviation with an emotional connection to reach down into society. Despite its initial success in revolutionising Indian civil aviation with its significantly lower fares, Air Deccan was mired in continuous losses - owing to technical and operational snags, coupled with aggressive expansions. The expansion came in for a scathing attack from various quarters including airline industry experts in India. Therefore, given the cost complexities, industrial constraints and competitive scenario in the Indian aviation industry, can Air Deccan revive its profitability with relentless low fares and sustain competition in the long run?
About
Abstract
This is the first of a three-case series. The case study tracks the journey of Air Deccan, a pioneer low-cost carrier (LCC) in the Indian skies since 2003. With a passion for reaching out to the common man and a vision of making every Indian fly, Captain GR Gopinath built Air Deccan - blending his experience in aviation with an emotional connection to reach down into society. Despite its initial success in revolutionising Indian civil aviation with its significantly lower fares, Air Deccan was mired in continuous losses - owing to technical and operational snags, coupled with aggressive expansions. The expansion came in for a scathing attack from various quarters including airline industry experts in India. Therefore, given the cost complexities, industrial constraints and competitive scenario in the Indian aviation industry, can Air Deccan revive its profitability with relentless low fares and sustain competition in the long run?