2. Group Members
Name Roll no.
Minakshi Budhkar 105
Surbhi Jain 119
Bhagyashree Patil 138
Tanvi Shendge 146
Shraddha Tandel 152
3. Problem Statement
1.To study the impact of rising fuel and labour
cost on the downfall of Air Deccan
2.To study the effect of rising competition in
LCC on Air Deccan.
3.To study the lack of marketing that affected
Air Deccan.
4.To study the challenges that a low cost
airline might face in Indian context.
4. S.W.O.T. ANALYSIS OF AIR
DECCAN
STRENGTHS
o Strong backing by the promoters.
o L.C.C segment is ever growing in the country.
WEAKNESS
o Heavy debts of Kingfisher airlines affecting operations.
o Limited no of routes and destinations compared to
market leaders like Indigo, Go air,Jetkonnect,Spice
Jet.
o It has less market share in the Indian industry.
5. OPPORTUNITIES
• Middle class taking to the skies
• Increasing Destination and reach
THREATS
• Strong competition in LCC segment
• Rising fuel cost and labour cost.
6. ALTERNATIVES
o Inclusion of frill services.
o Increase in the frequency of flights and to more
routes in domestic as well as international
destinations.
o Heavy marketing and promotion should be done
through all mediums of media.
o Compared to other competitors, prices should be
raised moderately in order to cover fuel and
labour cost.
7. DESCRIPTION OF
ALTERNATIVES
• The frill services should be included of food
and beverages.
• The frequency of Air Deccan flights to
regional as well as international destinations
must be included as the customers will have
more preference as well as feasibility.
8. • Air Deccan should do more advertisement
including tie-ups with advertisement companies
like yatra.com, go ibibo and air ticket discounts
during festive season, as it faces tough
competition from other competitors.
• In today's time, labour cost has doubled up
whereas fuel prices have gone up three fold, in
such a situation the prices of the airfares must be
increased moderate enough to cover their cost.
9. RECOMMENDATIONS OF
ALTERNATIVES
• In addition to the alternatives we feel that
the latest technology should be used in the
flights in order to be updated as there is
stiff competition.
• Also other factors like better infrastructure,
more regional connectivity, and better
services should be provided in order to
attract customers.
10. COST BENEFIT ANALYSIS
• Inclusion of food and beverages in
ticket rates would allow the company
to increase the bargaining power with
food retailers.
• Recover the marketing cost by allowing
other brand promotion within the flight.
11. RECOMMENDATIONS & SUGGESTIONS
• Indian Airline Industry was one of the fastest growing Airline
Industry across the world during the last decade. However,
skyrocketing fuel prices, economic slowdown, slashed
corporate travel budgets over the last 3 years has forced all
Indian Airlines to rethink their business model.
• Excess capacity build-up and poor infrastructure continue to
plague the industry which is also experiencing a decline in
passenger traffic at the same time.
• Mergers, liquidation and consolidations seem to be
necessary.
• Improving energy efficiency of engines, developing
infrastructure, increasing regional connectivity will
definitely have a positive impact on the industry.
