Industry Analysis Case Study

Air Deccan (B): The Captain, The Baron and The Unknown

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Abstract:
As a sequel to "Air Deccan (A): The Captain's Cocktail", this case study explores the options to revive Air Deccan - particularly the fund-raising initiatives. It highlights Air Deccan's search for a financial, as well as a strategic, investor - without diluting its low-cost image and vision of reaching the common man. Given the various international and domestic contenders bidding for a 26% equity stake in Air Deccan, participants can debate on who would make a better investor-partner for Air Deccan - considering each one's possible synergies and adversities

Pedagogical Objectives:

• To identify the right investor-partner for Air Deccan's equity investment - in the light of its vision, cash crunch, cost complexities and operational inefficiencies
• To help solve Air Deccan's dilemma in choosing the right investor-partner
• To assess whether fund-raising from private corporate investor is desirable at this stage of operation

Keywords : Kingfisher Airlines; UB Group; Vijay Mallya; Anil Dhirubhai Ambani Group (ADAG); Texas Pacific Group (TPG); Irelandia Investments; Equity dilution; Fund raising; Financial and strategic investor; Vision alignment and cultural fit; Competition; Premium value carrier; Managing in Troubled Times Case Study; Cash depletion; Low cost model