Simplifly Deccan

Simplifly Deccan
IATA ICAO Callsign
DN DKN DECCAN
Commenced operations 25 August 2003 (as Air Deccan)
Ceased operations 29 August 2008
(merged with Kingfisher Airlines to become Kingfisher Red)
Operating bases
Fleet size 40 (in September 2007)
Destinations 52
Company slogan Simplifly
Parent company United Breweries Group
Headquarters Bangalore, Karnataka, India
Key people G. R. Gopinath, founder
Website www.airdeccan.net (defunct)

Simplifly Deccan, formerly Air Deccan, was the first Indian low-cost carrier. Headquartered in Bangalore, it operated domestic flights from seven base airports using a fleet of Airbus A320, ATR 42 and ATR 72 aircraft. The airline appealed to middle class travellers with low fares and a large route network. It also employed several innovative methods to ensure the profitability of its business model. Nevertheless, Simplifly Deccan suffered high losses and merged with Kingfisher Airlines in April 2008. Kingfisher replaced the Deccan brand with Kingfisher Red in August 2008.

History

Air Deccan (2003–2007)

Simplifly Deccan was founded as Air Deccan by G. R. Gopinath, a retired Indian Army captain who had gained experience in the aviation industry through his Deccan Aviation venture.[1] Air Deccan became a wholly owned subsidiary of Deccan Aviation.[2] The airline launched operations on 25 August 2003 with a flight from Bangalore to Hubli.[3][4] At that time, its fleet consisted of two ATR 42-320 aircraft.[5] In order to increase capacity on its trunk routes, Air Deccan purchased two Airbus A320-200s and leased five in 2004.[6] In December of that year, the airline purchased an additional 30 A320s in a US$1.8 billion order.[7] It ordered 30 ATR 72-500s in February 2005.[8]

The airline underwent rapid growth, witnessing 30% growth in its passenger numbers in 2005–06.[9] In 2006 it was the third largest airline in India with a 19% market share, flying to 55 destinations with 30 aircraft.[10] It placed an order for 30 more Airbus A320s in December 2006.[11] The airline experienced 42% growth in passenger traffic in 2006–07, becoming the nation's second largest carrier in 2007. As it grew, other low-cost carriers emerged in the Indian market; SpiceJet, GoAir, IndiGo and JetLite were all launched between 2005 and 2007.[9]

Low-cost strategy

An Air Deccan Airbus A320 with NDTV advertising
Interior of a Simplifly Deccan Airbus A320

Air Deccan was the first low-cost carrier in India.[5] Launched amid a booming Indian economy and a growing middle class, the airline targeted middle class travellers with its low fares and extensive route network.[12] Tickets cost around 30% less than those of full-service airlines and cost about the same as or less than first class rail tickets.[10] Air Deccan focused on providing air service to underserved airports across the country, where competition was low and the airline could acquire a loyal customer base.[9] G. R. Gopinath claimed he wanted to make air travel accessible to every Indian.[13]

It is not the elite that I consider as my customers. It is the humble cleaning women of my office, the auto-rickshaw driver and other such people that we would like to cater to. We want them to dream that they too can fly, and we want to make that dream happen.
— G. R. Gopinath[14]

The airline operated a single cabin class, economy, allowing it to pack more seats into its aircraft. Following its no-frills approach, it charged for all food and beverages served on board.[15] Payment was also required for cancellations,[16] and no refunds or accommodations were provided to passengers who had missed their flights.[13]

Air Deccan operated a point-to-point route network from seven base airports.[13] It maintained low turnaround times and often outsourced work to local airport employees, especially at airports that saw few Air Deccan flights and did not require dedicated employees throughout the day. Air Deccan also gained advertising revenue by allowing advertisements both inside and outside its aircraft.[17] For reservations, the airline utilised multiple channels. Passengers could book tickets through travel agents, on the Internet or through call centres.[18] Each of these channels was connected to a fully web-enabled reservation system, making Air Deccan the first in India to use such a system.[19] Air Deccan also avoided the cost of printing tickets; passengers or travel agents were required to do so off the Internet.[18]

Simplifly Deccan (2007–2008)

In early May 2007, rumours began to circulate that Vijay Mallya, founder of Kingfisher Airlines, was interested in buying Air Deccan.[20] Gopinath dispelled the rumours, claiming "[Mallya and I] are from different planets; he is from Venus, I am from Mars".[21] Gopinath believed it was impossible to merge the airlines' separate business models; Kingfisher was a full-service carrier.[22] Nevertheless, negotiations began at the end of the month, and Kingfisher parent United Breweries Group purchased a controlling 26% stake in Deccan Aviation on 31 May.[23] Gopinath had changed his mind upon understanding that the two airlines would continue to function independently.[22][24] In addition, he needed to raise funds;[25] Air Deccan had lost ₹213 crore (US$32 million) during the quarter ending 31 March 2007.[24] Air Deccan was rebranded Simplifly Deccan in October 2007 and adopted Kingfisher's livery and flight attendant uniform.[26]

In December 2007, the airlines announced that they would merge into a single corporate entity while maintaining separate brands.[27] The airline business of Kingfisher Airlines Ltd was merged into Deccan Aviation Ltd on 1 April 2008.[lower-alpha 1] The charter business of Deccan Aviation Ltd was spun off into a separate company known as Deccan Charters Ltd.[29] The combined company utilised Simplifly Deccan's operating permit, allowing it to launch international flights in 2008; Simplifly Deccan would complete five years of operation that year.[lower-alpha 2][31] Mallya introduced major changes to the Simplifly Deccan brand in order to reduce losses and improve the airline's reputation, which had declined because of poor on-time performance. He also wanted to give the airline a premium touch while it remained a low-cost carrier. Simplifly Deccan ended the practice of outsourcing check-in staff, lengthened turnaround times and stopped selling tickets at promotional fares.[32][33]

Simplifly Deccan and Kingfisher continued to operate domestically with their own airline codes. Unless the airlines consolidated under a single set of codes, the Ministry of Civil Aviation required Kingfisher to use Deccan's codes on international routes; Mallya, on the other hand, wanted to use Kingfisher's codes.[34] On 29 August 2008, both airlines started using Kingfisher's codes. Simplifly Deccan also migrated to Kingfisher's reservation system and was renamed Kingfisher Red.[34][35]

Corporate affairs and identity

Former logo

Through the merger with Kingfisher Airlines, Simplifly Deccan became a subsidiary of United Breweries Group.[25] Headquarters were located on Cunningham Road in Bangalore, the capital of Karnataka.[36]

Livery

Simplifly Deccan adopted the livery of Kingfisher Airlines following the merger. The tail, engines and underside were painted red, and the kingfisher bird logo was applied to the tail. The former livery consisted of a fading blue cheatline and, on the tail, a blue circle with two yellow hands joined at the thumb like the wings of a bird.[37] The airline's mascot, R. K. Laxman's The Common Man, was often incorporated into the old livery. It was chosen in May 2005 to emphasise Simplifly Deccan's goal to make air travel more accessible.[38]

Destinations

At the time it ceased operations, Simplifly Deccan flew to 52 destinations across India. It had bases at seven Indian cities: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai.[39] The airline opened a base at Thiruvananthapuram in April 2006;[40] however, it ended flights to the airport in early 2008.[lower-alpha 3]

Fleet

Simplifly Deccan ATR 42-500
Simplifly Deccan ATR 72-500
Simplifly Deccan Airbus A320-200

Simplifly Deccan operated a fleet of ATR 42, ATR 72 and Airbus A320 aircraft. The ATR aircraft were used on flights to smaller airports, which typically do not have the infrastructure to support larger aircraft. The ATRs also allowed Simplifly Deccan to benefit from lower landing fees and fewer crew members on board. For routes of higher demand between major cities, Simplifly Deccan used its larger Airbus A320s. These aircraft also had lower operating costs on long distance routes.[43]

In September 2007, Simplifly Deccan's fleet consisted of the following aircraft:[44]

Simplifly Deccan fleet in September 2007
Aircraft In service Passengers
(economy)		 Notes
Airbus A320 22 180[45]
ATR 42 10 48[45]
ATR 72 8 72[45]
Total 40

Accidents and incidents

See also

Notes

  1. ↑ Kingfisher Airlines Ltd also operated a training and ground services business, which did not merge with Deccan Aviation Ltd.[28]
  2. ↑ At the time, Indian civil aviation policy required an airline to complete five years of operation and maintain a fleet of at least 20 aircraft before beginning international routes.[30]
  3. ↑ Thiruvananthapuram was listed in Simplifly Deccan's flight schedule effective 28 October 2007 to 29 March 2008,[41] but it was not listed in the final schedule effective 30 March to 25 October 2008.[42]

References

  1. ↑ Kazmi 2008, p. 535.
  2. ↑ Rao, Girish (17 April 2003). "Air Deccan to take off in Aug with ATR-42s". The Economic Times. Retrieved 26 July 2016.
  3. ↑ "Air Deccan to launch country's first low-cost flight on Aug 25". The Economic Times. 17 August 2003. Retrieved 18 June 2016.
  4. ↑ "Air Deccan services to be launched today". The Hindu. 25 August 2003. Retrieved 18 June 2016.
  5. 1 2 Kazmi 2008, p. 531.
  6. ↑ "Airbus lands $130 million Deccan sale". Flightglobal. 26 February 2004. Retrieved 18 June 2016.
  7. ↑ "Air Deccan to acquire 30 aircraft from Airbus". The Hindu. 21 December 2004. Retrieved 18 June 2016.
  8. ↑ "Air Deccan gets its first new aircraft". The Economic Times. 16 June 2005. Retrieved 18 June 2016.
  9. 1 2 3 Gross & Lück 2016.
  10. 1 2 Sampler 2006, p. 1.
  11. ↑ "Air Deccan orders 30 more Airbus A320s". Airbus (Press release). 3 January 2006. Retrieved 18 June 2016.
  12. ↑ Swaminathan 2009, p. 144.
  13. 1 2 3 Mahadevan 2007, p. 26.
  14. ↑ Kazmi 2008, p. 539.
  15. ↑ Kazmi 2008, pp. 539–540.
  16. ↑ Sampler 2006, p. 9.
  17. ↑ Kazmi 2008, p. 540.
  18. 1 2 Sampler 2006, pp. 10–11.
  19. ↑ "Air Deccan migrates to Radixx Reservation System". Oneindia. 17 March 2007. Retrieved 18 June 2016.
  20. ↑ "Air Deccan denies bid by rival Kingfisher". Daily News and Analysis. 4 May 2007. Retrieved 18 June 2016.
  21. ↑ "Biz is art of the possible: Gopinath". The Economic Times. 1 June 2007. Retrieved 18 June 2016.
  22. 1 2 Shukla, Tarun; Raghu, K. (1 June 2007). "Kingfisher deal to buy 26% of Deccan spells consolidation". Livemint. Retrieved 18 June 2016.
  23. ↑ "Kingfisher buys control of Air Deccan". The Times of India. 1 June 2007. Retrieved 18 June 2016.
  24. 1 2 "Vijay Mallya lands 26% stake in Deccan Aviation". The Hindu Business Line. 1 June 2007. Retrieved 18 June 2016.
  25. 1 2 "Deccan Aviation to merge with Kingfisher Airlines". Moneycontrol.com. 20 December 2007. Retrieved 18 June 2016.
  26. ↑ Kapoor, Chetan. "Simplifly Deccan from October 20". The Financial Express. Retrieved 18 June 2016.
  27. ↑ Somasundaram, Narayanan; Mukherjee, Arpan (20 December 2007). "Deccan-Kingfisher combine to look at share sale". Reuters. Retrieved 18 June 2016.
  28. ↑ "Kingfisher, Air Deccan boards okay swap ratio". The Economic Times. 1 February 2008. Retrieved 26 July 2016.
  29. ↑ Kingfisher Annual Report 2007–08 (PDF) (Report). United Breweries Group. 15 October 2008. p. 2. Retrieved 26 July 2016.
  30. ↑ "Govt scraps 5/20 rule for carriers". Deccan Herald. 17 June 2016. Retrieved 18 June 2016.
  31. ↑ Balasubramanyam, K. R. (27 January 2008). "Can this marriage work?". Business Today. Retrieved 18 June 2016.
  32. ↑ "Mallya touch: Deccan to fly red & white all the way". The Economic Times. 4 September 2007. Retrieved 18 June 2016.
  33. ↑ Giriprakash 2014.
  34. 1 2 Kumar, Nirbhay; Chauhan, Chanchal (27 August 2008). "Call-sign hitch may delay Kingfisher's global dream". The Economic Times. Retrieved 18 June 2016.
  35. ↑ Singhal, Manisha (29 August 2008). "Deccan to be rebranded Kingfisher Red". Rediff.com. Retrieved 18 June 2016.
  36. ↑ Verma, Varuna (16 September 2007). "In four years we have become bigger than Indian Airlines. We have created a revolution'". The Telegraph. Kolkata. Retrieved 18 June 2016.
  37. ↑ Sinha, Saurabh (15 August 2007). "Kingfisher, Air Deccan push for foreign ticket". The Economic Times. Retrieved 18 June 2016.
  38. ↑ "Air Deccan unveils new mascot". The Hindu. 5 May 2005. Retrieved 18 June 2016.
  39. ↑ "Air Deccan to open Ahmedabad's first ever aircraft base". Moneycontrol.com. 2 September 2006. Retrieved 18 June 2016.
  40. ↑ "Thiruvananthapuram to be seventh base for Air Deccan". Oneindia. 25 March 2006. Retrieved 18 June 2016.
  41. ↑ "Schedules". Simplifly Deccan. Archived from the original on 17 November 2007. Retrieved 15 June 2016.
  42. ↑ "Summer Schedules from 30th March 2008 to 25th October 2008". Simplifly Deccan. Archived from the original on 26 August 2008. Retrieved 14 June 2016.
  43. ↑ Sampler 2006, p. 8.
  44. ↑ Krishnan, Rishikesha (2008). The Indian Airline Industry in 2008 (PDF) (Report). Indian Institute of Management Bangalore. p. 6. Retrieved 18 June 2016.
  45. 1 2 3 Balasubramanian 2007, p. 240.
  46. 1 2 "ASN Aircraft accident ATR-72-212A (ATR-72-500) VT-DKC Bangalore-Hindustan Airport (BLR)". Aviation Safety Network. 18 June 2016. Retrieved 18 June 2016.
  47. ↑ "Air Deccan aircraft skids off runway". The Hindu Business Line. 11 March 2006. Retrieved 18 June 2016.
  48. ↑ "Landing accident sets off weekend chaos at Bangalore airport". The Hindu. 12 March 2006. Retrieved 18 June 2016.
Bibliography

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