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AIR DECCAN

STRATEGIC DECISIONS

Air- Travel in India is limited not by an economic barrier, but by a caste barrier, which

restricts our conception of the air-traveler as a wealthy, sophisticated urbanite who needs

air-conditioned airports and five-star in-flight service. Rather than accept this limited

view of the flyer and compete for a slice of the pie, Air Deccan began by daring tovisualize the common man flying and figuring out how to get him in the air. The key

elements for the success of any product are affordability and accessibility. Air Deccanairfares are affordable and their drive is to ensure that their tickets are easily accessible to

people.

Air Deccan decided to think out of the box. Instead of a flat fee upfront or paying in

parts, it worked out a payment schedule based on the number of passengers booked everymonth. For an organization thats ruthlessly focused on pruning costs, this approach

helped avoid any initial heavy investment.

OPERATION DECISION

1. The carriers managing director Capt. Gopinath decided to do away with in-flight meals,

reduce the crew to a bare minimum and add more seats. However, its technology thats

aiding his vision of keeping costs ultra-low by allowing Air Deccan to offer tickets a

minimum of 30 percent lower than those of full-service carriers

2. By implementing a system that allows tickets to be booked over the Internet, airline saves

close to 20 percent in distribution costs alone.

3. The system now brings in between Rs 2.5 crore and Rs 3 crore daily, thus makingwww.airdeccan.net Indias biggest e-commerce site,

4. Paper tickets -They saved Rs 4 on just the cost of printing each ticket

5. The carrier also slashed operating expenses by using paper tickets to cut turnaround time

at an airport. All the paper tickets are bar-coded. Bar-code readers used in conjunction

with thermal printers slash the time spent in generating boarding cards, and help

passengers get on-board and on their way faster.

6. Its the Departure Control System, which allows passengers to print out a paper ticket,

retrieve a PNR number against that and have the airport check-in counters issue a

boarding pass.

7. In alliance with the Bangalore-based Jigrahak Mobility Solutions, Air Deccan also allows

consumers to purchase tickets through GPRS-enabled mobile phones.

CONTROL DECISIONS

1. Cutting of turnaround time which results in increased revenues from more flights andlower parking rental.

2. Fewer cabin crew 4 per airbus and I on every ATR

3. Fever ticketing offices, fewer salaries fewer bills to be paid due to cost cutting measures

http://www.airdeccan.net/http://www.airdeccan.net/

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4. Different classess make accounting and auditing of tickets both tedious and expensive. So

air deccan has just one class. This results in lesser accounting processes.

5. Increased seats( 180 passengers as compared to 150 in other airline)

6. Also tied-up with indiatimes shopping and reliance webworld and HPCL

7. Working in close coordination with his colleagues in the revenue and marketing

departments, Col Saksenas also slowly increasing the ADS complexity, for instance, by

allowing Super Value Flyer Packages to be booked online.

PRODUCTION SYSTEM MODEL:PRODUCTION SYSTEM MODEL:

Inputs:Inputs:

EnvironmentEnvironment created was ECONOMICAL. Its tagline SIMPLIFY conveyed to the

people that this airline satisfied the basic need of a person w.r.t to traveling. It was

economical and mainly targeted to the Indian middle class. Market competitionMarket competition =. Competition in the aviation industry has been extremely

high. The birth of India's first low-cost, no-frills airline, Air Deccan, has jolted the

existing and larger players. Air Deccan's strategy of offering unimaginably low fares

on flights to the metropolitan cities even if in limited numbers has shaken the

established airlines. Air Deccan's phenomenal growth spurred the entry of more than

half a dozen low-cost air carriers in India. Air Deccan faces stiff competition from

Kingfisher Airlines,SpiceJet and GoAir. The growth of these low-cost air carriers has

also forced mainstream Indian airliners like Indian Airlines, Jet Airways and Air

Sahara to lower their fares. However, there is a lot of scope for the growth of the

airline since the Indian air industry continues to remain largely under-penetrated

Customer desireCustomer desire : in India people want to reach their destination faster and with alow fare. Air deccan fulfilled this desires

PRIMARY RESOURCESPRIMARY RESOURCES

Current fleetCurrent fleet The Air Deccan fleet consists of the following aircraft (as of

September 2006):15 Airbus A320-200 ,5 ATR 42-320, 10 ATR 42-500, 5 ATR 72-212A

Total - 35 aircraft

The average age of the Air Deccan fleet is 6.1 years (at April 2006).

Air Deccan also had evaluated wide body options like the Airbus A380 for international

operations

Air Deccan has 48 seater ATR-42s in operation in its fleet.

Air Deccan also has Airbus A-320 - 180 seater aircraft.

The airline has recently acquired ATR 72 500 aircraft. These are 72 seater aircraft with

superior engine power and improved interiors for a very comfortable flying experience.

The aircraft is very reliable with highly improved productability.

Capital moneyCapital money was pooled in by the Parent Company Deccan Aviation. It is an

airline based in Bangalore,India. It operates helicopter and fixed-wing charter

http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/SpiceJethttp://en.wikipedia.org/wiki/GoAirhttp://en.wikipedia.org/wiki/Indian_Airlineshttp://en.wikipedia.org/wiki/Jet_Airwayshttp://en.wikipedia.org/wiki/Air_Saharahttp://en.wikipedia.org/wiki/Air_Saharahttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/SpiceJethttp://en.wikipedia.org/wiki/GoAirhttp://en.wikipedia.org/wiki/Indian_Airlineshttp://en.wikipedia.org/wiki/Jet_Airwayshttp://en.wikipedia.org/wiki/Air_Saharahttp://en.wikipedia.org/wiki/Air_Saharahttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/India

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services. Its main base is Jakkur Aerodrome, Bangalore. Its a leading airline service

in India. It also managed to raise capital through IPO

Conversion Sub- SystemConversion Sub- System was developed by compiling all the

inputs: Private Services .

Output:::Output:::Services produced were quick, less time consuming, convenient,

affordable, efficient, effective and acceptable by all classes of economy.