From Creating Change to Changing Creatively

Air Deccan: From Creating Change to Changing Creatively
Current Strategy
Air Deccan provides air travel at a low cost with no frills added. A large portion of the income generation comes from tickets and advertising sales.
Air Deccan has had much success in the low cost carrier airline industry. They created a blue ocean strategy in providing air travel as an option for the ‘common man’. Air Deccan did not try to tap into the current air travel market, but increased the size of the entire market, dipping into other transportation markets – such as rail.
Air Deccan was established in 2003 and now in 2005 they are looking to revamp the strategy – showing a high level of forward thinking and the ability to make changes prior to entering the mature phase of the market. Any recommendations will have the back up from management to be implemented.
Exhibit 1 in the case shows that expenses are increasing faster than the income being generated
– from 2004 to 2005 expenses increased approximately 509% with income increasing only
457%. If expenses continue to increase at this rate and income does not this could be detrimental to the organization.
Air Deccan has the first mover advantage – they have established a brand presence in the airline market, but it seems the consumers Air Deccan is targeting may not feel any ways about brand loyalty, as their main concern is pricing. Another low cost carrier can win over a consumer in this market by providing a lower cost.
Air Deccan is currently a leader in its class with an overwhelming market share in a short period of time. At the same time, Air Deccan also carries a high amount of debt (Rs.
7,000,000). In order to accommodate the growing market Air Deccan will need to raise more capital and purchase assets to add to the current fleet.
6 |
Air Deccan has a phenomenal ability to create partnerships and alliances to benefit their sales and thus decreasing their operational costs for travel agents, etc. Air Deccan saw a gap in the consumer they were targeting and the internet usage among these consumers and thus created partnerships to fill these gaps.
Through the analysis it is evident that Air Deccan is forward thinking and foresees the competition arising rapidly. Although they are still in the growth stage, if they can build a forward thinking strategy that will keep them at the forefront they will succeed in the soon to be highly competitive market. As more competitors enter the market the consumers will also increase their perception of a baseline low cost carrier and carriers in turn will have to increase costs and decrease margins. Further, the airline trend seems to fall into the alliance and partnership route when competition gets fierce. In conclusion, Air Deccan must continue to be competitive and build partnerships to sustain their competitive advantage. A detailed recommendation follows in the next section.
Through thorough analysis it is evident that Air Deccan should create a partnership with Kingfisher. Air Deccan and Kingfisher will still operate as two different airlines, but they can leverage expertise in order to reduce costs. Such as ticket handlers, maintenance costs, infrastructure, etc. Air Deccan is a forward thinking organization that is one step ahead of everyone else, and management is always looking for the next move to sustain a competitive advantage.
Airlines have a history of benefiting and surviving by merging or creating partnerships, as this can reduce costs and create efficiencies. If the historical trend shows that this is evident in low cost carriers, Air Deccan will again be one step ahead of the game by partnering prior to having other low cost carriers take over market share in the industry.
The partnership will increase the fleet size as this was a goal that Air Deccan was focused on. Kingfisher already owns 8 Airbus A320, which is part of Air Deccan’s fleet type (refer to exhibit 4 in case). As Air Deccan accumulated large debt and their expenses are increasing at a faster rate than their income this partnership will allow them to minimize costs to purchase one airbus annually.
A large portion of the sales revenue comes from the sale of advertising space, but as gas prices
7 |
are on an upward trend the sales may not compensate for this and allow for the ticket price to remain so low. The partnership, in turn, will allow for cost minimization and high buying power.
As other low cost carriers enter the market each airline will have to differentiate themselves in some other way, as costs can only be driven down so much prior to making a loss. Further, the baseline requirements from consumers will start to increase as their options increase. This partnership will allow Air Deccan’s operational costs to decrease and may free up capital to provide a better ‘service’ along with low cost and no frills (ie. In flight meals, etc) in order to differentiate themselves.
The partnership of Kingfisher and Air Deccan will serve a large market of both low cost and medium cost travelers and essentially become the largest private domestic airline in India, starting with a total of 17% of the market share (refer to exhibit
3 in case). They will operate as Tanishq and Gold Plus – two different entities while sharing resources to build market share and revenue.
All Travellers will compare new entrants into the low cost airline industry with Air Deccan, if Air Deccan can change the image of a low cost carrier by building an alliance with Kingfisher and providing a high level of customer service (as NWA in the North American Market), then this will be the benchmark that other carriers will have to exceed to remain competitive. Thus, Air Deccan will always remain a strong competitor.
The market that Air Deccan currently serves are highly price sensitive, as they are first time travellers and seen as the ‘common man’. This puts the buying power in the hands of the consumer; the consumer does not seem focused on brand loyalty, but low price. Air Deccan’s alliance with Kingfisher will allow for these prices to remain at low levels.
8 |
According to the case, Air Deccan made the strategic choice to operate in the low-price, low-quality space of the market, particularly by attracting customers who would not travel by air, otherwise. Consequently, the company devotes all its resources and tactics to stay competitive in this portion of the market. We identified three critical success factors that would determine whether Air Deccan would continue to operate in this market space successfully:
(1) Critical Success Factor 1: Air Deccan’s ability to stay low cost and particularly, to stay lower cost than its current and future competitors, including non-air transportation providers.
(2) Critical Success Factor 2: Air Deccan’s ability to grow in terms of number of passengers and fleet size while making profit.
(3) Critical Success Factor 3: Air Deccan’s ability to forge alliances with business partners (esp. airports) and to maintain exclusive alliances that competitors cannot easily imitate.
Our basic proposition is that viability of Air Deccan’s current strategic choice of
serving the low-price, low-quality portion of the market depends on whether the company is able to effectively deliver on each of these critical success factors in the future. Next, we discuss each factor in detail, first explaining why we consider the factor to be critical for Air Deccan’s success and then analyzing whether the company is poised to deliver on the factor sustainably.
Critical Success Factor 1
According to the case, Air Deccan helped expand the airline market by adding customers who were not air travelers earlier. This is evident from the disproportionate rise in the rate of growth in air travel since Air Deccan’s market entry— Table 1 on page 2 shows an increase in growth rate from 8.6% to 26.8%. We infer from this and other information from the case that the majority of Air Deccan’s target market were customers who would endorse Air Deccan
only if the company continued to offer very low prices, even lower than those offered by non- air transportation providers, especially, the Indian Railways.
9 |
Based on how growth has affected Air Deccan’s financial performance, it seems that currently, the company is not able to leverage on this critical factor. Exhibit 1 shows a steady rise in the ratio of fuel costs to total costs as a result of scaling up of operations:
2004: 13.9%
2005: 27.48%
2006: 32.35% (projected based on available data)
A possible reason for this is rising oil prices. Exhibit 1 also indicates that keeping costs low is proving to be a struggle for the company and it has progressed from initial profit to loss as it has scaled up operations. Even if the company stops scaling up any further, rising fuel prices would continue to put pressures on its costs, eroding profits or causing losses. Based on this analysis, we conclude that Air Deccan’s current practices are not effective in making the company deliver on Critical Success Factor 1.
Critical Success Factor 2
In order to stay profitable, Air Deccan has to compensate for its low prices by generating high volume in terms of number of passengers and flights. Particularly, increasing fleet size will be helpful given the promotional revenue that each airplane generates, although we

Get Professional Assignment Help Cheaply

Buy Custom Essay

Don't use plagiarized sources. Get Your Custom Essay on
From Creating Change to Changing Creatively
Just from $9/Page
Order Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essay GET A PERFECT SCORE!!! smile and order essay Buy Custom Essay

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.
  +1 718 717 2861           + 44 161 818 7126           [email protected]
  +1 718 717 2861         [email protected]