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2003- Background of India’s aviation industry

2003- Background of India’s aviation industry. 2003- Background of India’s aviation industry. Challenges faced by Low-cost Carriers. Pricing and Load factor * Achieving a proper balance of pricing and percentage of seats filled per flight

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2003- Background of India’s aviation industry

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  1. 2003- Background of India’s aviation industry
  2. 2003- Background of India’s aviation industry
  3. Challenges faced by Low-cost Carriers Pricing and Load factor* Achieving a proper balance of pricing and percentage of seats filled per flight Price wars with existing players in the airline industry Manpower Shortage of trained personnel Retaining existing employees Infrastructure Deficient airport system Overutilization of top 5 airports Inadequate facilities in secondary and tertiary airports *Load Factor: The percentage of seats available in an aircraft that are actually purchased by passengers
  4. Key statistics
  5. Key statistics
  6. Key statistics
  7. Key elements of Air Deccan’s Low-cost strategy No Frills (Hot meals, frequent flyer programs, etc.) No meals on board + No Business Class => More seats (20% increase) => Quick turnaround time for cleaning/ maintenance One flight attendant – selling snacks/ non-alcoholic drinks No paper ticket processing Proprietary IT solutions Point-to-point service, instead of hub-and-spoke No toll-free lines for customer-service
  8. Air Deccan - IT solution Partnership withInterglobe Technology Quotient Internet-based Customer Reservation System (CRS) The entire IT solution was developed in 40 days The CRS enabled Air Deccan to Save approx. 20% in distribution costs Monitor yield management through available seat occupancy data Connect different geographies Improve cash-flow via pre-payments Reduce collection and administrative costs Optimize booking levels Sell tickets 24x7
  9. Air Deccan - IT solution Partnership withSheorey Digital systems Developed an Airline Resource Management System (ARMS) to track Logistics Maintenance Training Crew Rotation
  10. Changes after the merger
  11. Air Deccan Value Chain The team could use this to summarize value chain aspects – I picked this template from one of the cases - Navin
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