Air Deccan: The First Low Cost Airline in India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTR134 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges


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Case Length : 20 Pages
Period : 2003 - 2004
Organization : Air Deccan
Pub Date : 2004
Teaching Note : Not Available
Countries : India
Industry : Airlines


The case describes the entry and expansion strategies of Air Deccan, the first low cost airlines in India. It discusses in detail the low cost business model of Air Deccan, its target market and the efforts made by the company to promote its services.

Finally, the case highlights the challenges facing Air Deccan and examines whether the company's business model would be successful in India or not.

The case includes a detailed note on the Indian civil aviation industry covering the profile of major players, India's civil aviation policy and the statutory requirements to be fulfilled by a company to enter and operate in the industry.


Study and analyze the structure of the Indian civil aviation industry

Develop an understanding on the operations of low cost carriers in India

Examine the viability of low cost business model in the Indian aviation industry

Understand the target market and the promotional strategy of a low cost airline in India and draw a comparison with that of full service airline

Study the challenges that a low-cost airline company might face in the Indian context


  Page No.
Introduction 1
The Indian Civil Aviation Industry 2
Entry and Expansion of Air Deccan 3
The Low Cost Business Model 4
The Target Market and Positioning 6
The Challenges 7
Exhibits 10


Air Deccan, Indian Civil Aviation Industry, Low Cost Airlines in India, Low Cost Business Model, Target Market, Positioning, Statutory Requirements of Scheduled Airline Services, Jet Airways, Full Services Airlines in India, Aviation Policy of India

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