Air Deccan - India's First Low Cost Airline | Services Marketing Case Studies

Details

Case Code : CLSM001
Publication date : 2005
Subject : Services Marketing
Industry : Airline Industry
Length : 04 Pages
Price : Rs. 100

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Key words:

Low Cost Airlines, Air Deccan, Business Travelers, No-Frills Air Travel, Full-Service Airlines (FSAs'), Online Reservation System, Dynafares, Pricing, Print and Outdoor Media, Affordability, Kingfisher Airlines, Visa Airlines, Royal Airlines, Air-India Express

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The caselet is about the launch of India's first low cost airlines-Air Deccan. The main features of their airlines have been described, along with the measures taken to lower the cost of aircraft acquisition and maintenance. It explains the pricing strategy of Air Deccan and its innovative pricing scheme-Dynafares. There are details about the advertising strategy followed by Air Deccan. Finally, the caselet discusses the competitive structure of low cost airlines market in India.

Issues:

  » Low cost airlines in India.
  » Distribution strategies of low cost airlines.
  » Pricing strategies of low cost airlines.
  » Promotional strategies of low cost airlines.

Introduction

The success of many low cost airlines (LCA) such as (Southwest, Ryanair, AirAsia and Easyjet) in many parts of the world has inspired airline and business firms in India to launch LCAs.

Air Deccan was the first LCA in India. It launched its service on September 2003, with two aircrafts running 20 services to eight cities. By September 2004, Air Deccan increased this figure to 54 flights a day. Air Deccan followed a different business model from that of the full service airlines (FSA's) to maintain its low cost advantage. Air Deccan's objective is to make air travel affordable by offering services at nearly 50% of the airfares offered by present market players...

Questions for Discussion:

1. Discuss how effectively Air Deccan has used the elements of its services marketing mix to market its services.

2. Perishability is one of the major characteristics that affect service providers like Air Deccan. What steps has Air Deccan taken to reduce the negative effects of perishability?