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    Kingfisher Red, formerly known as Air Deccan and Simplifly Deccan, is a low-cost airline headquartered in Mumbai, India that was started in 2003 to enable more Indians to fly. It pioneered routes to smaller cities in India and used strategies like single aircraft types, dynamic fares, unreserved seating and point-to-point routes to lower costs. In 2008, Air Deccan merged with Kingfisher Airlines.

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    Kingfisher Red, formerly known as Air Deccan and Simplifly Deccan, is a low-cost airline headquartered in Mumbai, India that was started in 2003 to enable more Indians to fly. It pioneered routes to smaller cities in India and used strategies like single aircraft types, dynamic fares, unreserved seating and point-to-point routes to lower costs. In 2008, Air Deccan merged with Kingfisher Airlines.

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    14 views12 pages

    Cost-Reduction Strategy: Jamir KV

    Uploaded by

    Jammy Kv
    Kingfisher Red, formerly known as Air Deccan and Simplifly Deccan, is a low-cost airline headquartered in Mumbai, India that was started in 2003 to enable more Indians to fly. It pioneered routes to smaller cities in India and used strategies like single aircraft types, dynamic fares, unreserved seating and point-to-point routes to lower costs. In 2008, Air Deccan merged with Kingfisher Airlines.

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    COST- REDUCTION STRATEGY

    JAMIR KV

    AIR DECCAN
    Kingfisher Red, known formerly as Simplifly Deccan and prior to that as Air Deccan, is a low-cost airlines run by Kingfisher Airlines. It is headquartered in Mumbai, India

    Passengers can earn frequent flyermiles (called King Miles) for tickets booked on Kingfisher Red through the King Club loyalty program run by its parent Kingfisher Airlines.

    HISTORY
    Formerly known as Air Deccan, the airline was previously operated by Deccan Aviation. It was started by Captain G. R. Gopinath and its first flight took off on 23 August 2003 . It was known popularly as the common man's airline, with is logo showing two palms joined together to signify a bird flying.

    The tagline of the airline was "Simplifly," signifying that it was now possible for the common man to fly. The dream of Captain Gopinath was to enable "every Indian to fly at least once in his lifetime."

    Air Deccan was the first airline in India to fly to second tier cities like Hubballi,Mangalore,Madurai and Visakhapatnam from metropolitan like Bangalore and Chennai. On 19 December 2007, it was announced that Air Deccan would merge with Kingfisher Airlines.

    The merger became effective April 2008, with Vijay Mallya becoming the Chairman and CEO of the new company, while G. R. Gopinath became its Vice-Chairman

    COST- REDUCTION STRATEGY


    Starting with a single type of airplane with a single passenger class (reducing training and service costs). A dynamic fare scheme, which awards early bookings and increases fares as the plane fills up. Unreserved seating, encouraging passengers to board early and Quickly.

    Flying to cheaper, less congested secondary airports to avoid air traffic delays and take advantage of lower landing fees. Short flights and fast turnaround times to maximize utilization of planes. Simplified routes emphasizing point-to-point transit instead of transfers at hubs.

    Emphasis on direct sale of tickets, especially over the Net to avoid commissions to travel agents. Elimination of free catering and other complimentary services replaced by optional paid for in-flight food and drink.

    THANK YOU

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