Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Published by: International Institute for Management Development (IMD)
Originally published in: 2008
Version: 01.07.2008
Length: 24 pages
Data source: Published sources

Abstract

This is part of a case series. Captain Gorur Ramaswamy Gopinath started his journey with a dream - a dream inspired by one simple statement: 'I want every Indian to fly at least once in their lifetime'. With a population in excess of 1 billion people, India certainly offered a vast reservoir of future air travelers. In 2002, when Capt Gopinath first broached the idea of starting a low cost airline to serve India's travel needs, no one took him seriously. Bankers refused to fund him, aircraft manufacturers ignored him and aviation industry observers swore that India was not ready. However, he was convinced that India's burgeoning middle class, already buying colour TVs and cell phones, could be converted to air travel. In 2003 he launched the first low cost airline company in India with a leased 48-seater ATR aircraft and USD10 million from investors. By 2007, Capt Gopinath was close to realising his dream. Air Deccan, with a market share of 21.6%, was India's fastest-growing low cost carrier and the second-largest airline in the country. It ran the most extensive network in India, covering 61 airports, flew some 306 scheduled flights a day and operated a brand new fleet of 14 Airbus A320 and 22 ATR Turboprops. Visionary and always optimistic, Capt Gopinath had brought about a total revolution to the highly regulated Indian skies. But every revolution carries the seeds of its own demise. Competition was increasing rapidly now that the model had been validated, and the Indian airport infrastructure was on the verge of a massive breakdown. New business models had to be devised to remain ahead of the curve. The new logo for the company enigmatically offered a glimpse of what Capt Gopinath had in mind: SIMPLIFLY?
Location:
Industry:
Size:
40 aircraft, 1,000 employees
Other setting(s):
2002-2007

About

Abstract

This is part of a case series. Captain Gorur Ramaswamy Gopinath started his journey with a dream - a dream inspired by one simple statement: 'I want every Indian to fly at least once in their lifetime'. With a population in excess of 1 billion people, India certainly offered a vast reservoir of future air travelers. In 2002, when Capt Gopinath first broached the idea of starting a low cost airline to serve India's travel needs, no one took him seriously. Bankers refused to fund him, aircraft manufacturers ignored him and aviation industry observers swore that India was not ready. However, he was convinced that India's burgeoning middle class, already buying colour TVs and cell phones, could be converted to air travel. In 2003 he launched the first low cost airline company in India with a leased 48-seater ATR aircraft and USD10 million from investors. By 2007, Capt Gopinath was close to realising his dream. Air Deccan, with a market share of 21.6%, was India's fastest-growing low cost carrier and the second-largest airline in the country. It ran the most extensive network in India, covering 61 airports, flew some 306 scheduled flights a day and operated a brand new fleet of 14 Airbus A320 and 22 ATR Turboprops. Visionary and always optimistic, Capt Gopinath had brought about a total revolution to the highly regulated Indian skies. But every revolution carries the seeds of its own demise. Competition was increasing rapidly now that the model had been validated, and the Indian airport infrastructure was on the verge of a massive breakdown. New business models had to be devised to remain ahead of the curve. The new logo for the company enigmatically offered a glimpse of what Capt Gopinath had in mind: SIMPLIFLY?

Settings

Location:
Industry:
Size:
40 aircraft, 1,000 employees
Other setting(s):
2002-2007

Related