Case on Air Deccan

2120 Words9 Pages
Case Study
Strategic management
Evaluation II


Air Travel in India
For decades, air travel in India was meant for the most elite and powerful in society. An overwhelming majority of travellers who could not afford the prohibitive air travel fares, preferred to journey on trains and buses.
The revolutionizing effects of liberalization swept India with dynamic changes in the aviation sector. From being a service that few could afford, the sector has now graduated to being a fiercely competitive industry with the presence of a number of private and public airlines and several consumer-oriented offerings. In ten years of competition in the aviation sector, private airlines have changed the
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All this translates to further downward revision of fares and packaged offers for passengers.


The case is replete with illustrations of how Captain Gopinath crafted the company from scratch. He went on a 'boot strapping ' mode, which is the hallmark of a successful entrepreneur. The constancy of purpose, focus and humility are evident. His ability to sense opportunities from chance encounters (such as a visit to the USA or the Southeast Asian countries) are out of the ordinary experience. These and many other qualities are a 'must have ' list of qualities of a successful entrepreneur. Anyone aspiring to succeed in an entrepreneurial venture will do well to emulate these qualities, among others.
Rise of Air Deccan
"It hit me like a ton of bricks. This country has a population of a billion, but only 15 million air passengers. May be the time is right. If one billion people can fly, and we get a miniscule percent of the market, imagine how big that will be? It 's not an impossible dream. "
- Captain Gopinath, in The Hindu, Sunday, August 15, 2004
Air Deccan, India 's first Low-cost Airline (LCA), started off with more of a whimper than a bang in September 2003 with an aborted maiden flight from Hyderabad that didn 't quite make it off the ground when a fire broke out in one of its engines. Adding to the embarrassment was the presence of the then Union Minister of State for Civil Aviation, Pratap Singh
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