Air Deccan, the survivor.

[SN30952]

Air Deccan is innovating revenue.
It hawks advertisement space on the seats, the cabin interiors, and even on the body of the airplane.
Air deccan offers its cabin crew a 10% commission on all beverages and food that they sell passengers on the flight. Captain G R Gopinath, co-promoter and managing director of Air Deccan, explains the logic: "
As the airline does not offer complimentary meals, he expects the average passenger to fork out about Rs 75 to pick up a quick meal. On a margin of 30% for the 1 million passengers who have flown Air Deccan over the last 12 months, that means Rs 75 million* in extra revenue.

Air Deccan soon will offer inflight entertainment, from movies to news and music, at a cost.
The airline is already making about Rs 2 million on each Airbus aircraft a month through ad revenue, and he hopes to squeeze in another Rs 50 million by hawking inflight entertainment.

Where have Gopinath and his men cut costs?
Gopinath suggests that his Airbus aircraft have 180 seats, 22% more than what his competitors squeeze in, and that he flies his aircraft for over 12 hours compared to the competition's eight-nine hours.

Air Deccan's sales and distribution costs constitute only 8% of the total cost compared to the full-service airlines that spend as much as 28%.

Air Deccan has an equity capital of only Rs 300 million and a debt component of Rs 150 million.

Low-cost makes sense in Europe and US where labour costs constituted over 45% of total cost.
In India it is not more than 15%. Instead, 50% of the cost is fixed.

It looks like Air Deccan makes good money out everything except flying.
The flying pays for the lease and ops? All the rest goes into the payment of the financial burden?


*75.000.000 Indian Rupee = 1.279.120 Euro for sandwiches and drinks.

[waldova]

Hey, their way of working looks quit similar to the Vueling story who also flys A320 with 180 passengers!!
Well, it would be nice to have flight entertainment but even for a short flight I would not take it. But a sandwich, well that i take all the time, like most of the passengers.

[HAWK21M]

Their Mx needs to be strengthend.A lot of crazy avoidable incidents lately.
regds
MEL

[waldova]

What is MX? And about what incidents are you talking about?

[SN30952]

Their Mx needs to be strengthend. A lot of crazy avoidable incidents lately. regds MEL

Come up, MEL. Let hear.
Here we like stories about:
crazy
avoidable
incidents
lately
in aviation.

[Advisor]

Since the advertising and marketing costs of Biggies have made them sit right up, many of these biggies are sitting upright and are watching Air Deccan.

Air Deccan had held talks with many international players as big as Singapore Airlines to pick up stake et all after the Government Of India announced a policy for the aviation sector.

One can visit www.airdeccan.net to get more information on the airline

[ILS25L]

Goodevening,
Speaking about Air Deccan : just have a colleague back from India and she flew A320 from Air Deccan and suprise (!!!) : she managed to bring me back a nice safetycard
Greetz, Karl