Analysis of Air Deccan :: essays research papers

Analysis of Air DeccanAir Deccan was naturalized in 2003 and started operations in August that twelvemonth with regular schedule careers from Bangalore to Mangalore and Hubli. The following month, it opened a second hub at Chennai. Air Deccan became the scratch line private Indian operator to fly Airbus aircraft when it deployed the first of 5 undertake Airbus A320s in July 2004. It was the first airline business in India to link second cycle cities like Coimbatore, Hubli, Madurai and Visakhapatnam to metros like Bangalore and Chennai. Barely two age into its operation the no-frills(prenominal) airline, Air Deccan, has grown from one aircraft to 19 and from one daily flight to 123. It has placed a $1.1 billion order with Airbus and will get an aircraft a month for the next 64 months. In its first full year of operation, ending in March, the company flew 1 one thousand thousand passengers and had revenues of $75 million. communicate revenue for this year $250 million. Also, in 2004 the company raised $40 million in private equity from ICICI Venture Funds Management, Indias largest private- equity player, and knob city International, an arm of the huge Los Angeles money manager Capital Group. Air Deccan is tone to go public over the next few months. "This is not the myth of Air Deccans growth--its the story of the growth of India," says Gopinath. His success in the fast-growing breeze industry has set off a gold rush. Two spic-and-span airlines--Delhi-based SpiceJet Limited and beer baron Vijay Mallyas Kingfisher Airlines--started flying in recent months. Several upstart players are waiting in the wings--including Indigo, backed by U.S. Airways former chief Rakesh Gangwal, and GoAir, which is backed by Jeh Wadia from the controlling family of the giant Bombay Dyeing & Manufacturing. "Everybody knew that India was a big market--but Gopinath went out and actually proved it," says Kapil Kaul of the Center for Asia Pacific Aviation, a consultancy. "He led the way--and led it successfully." The man behind the upstart airline traces his roots to a village in the southern Indian state of Karnataka, where his father was a schoolteacher. His own education veered into nearly eight years in the Indian army. Tired of regimentation, he veered again, into silk farming on a family plot. The transition from the cocoon to the cockpit came in 1995 when he teamed up with a champ from his army days, Captain K.