Simplifly Deccan

Simplifly Deccan, formerly known as Air

Deccan, was the first Indian low-cost
carrier. Headquartered in Bengaluru, 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
employed several innovative methods to
ensure the profitability of its business
model. Nevertheless, Simplifly Deccan
merged with Kingfisher Airlines in April
2008. Kingfisher replaced the Deccan
brand with Kingfisher Red in August 2008.
 Parent company United Breweries
Group
Headquarters Bengaluru, Karnataka,
India

Key people G. R. Gopinath,

founder

History

Air Deccan (2003–2007)

Air Deccan used ATR aircraft for regional destinations.

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.[3] Air Deccan became a
wholly owned subsidiary of Deccan
Aviation.[4] The airline launched operations
on 25 August 2003 with a flight from
Bengaluru to Hubbali.[5][6] At that time, its
fleet consisted of two ATR 42-320
aircraft.[7] In order to increase capacity on
its trunk routes, Air Deccan purchased two
Airbus A320-200s and leased five in
2004.[8] In December of that year, the
airline purchased an additional 30 A320s
in a US$1.8 billion order.[9] It ordered 30
ATR 72-500s in February 2005.[10]

The airline underwent rapid growth,

witnessing 30% growth in its passenger
numbers in 2005–2006.[11] In 2006 it was
the third largest airline in India with a 19%
market share, flying to 55 destinations
with 30 aircraft.[12] It placed an order for
30 more Airbus A320s in December
2006.[13] The airline experienced 42%
growth in passenger traffic in 2006–2007,
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.[11]

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.[7] 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.[14] Tickets cost around 30% less
than those of full-service airlines and cost
about the same as or less than first class
rail tickets.[12] 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.[11] G. R.
Gopinath claimed he wanted to make air
travel accessible to every Indian.[15]
 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[16]

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.[17] Payment
was also required for cancellations,[18] and
no refunds or accommodations were
provided to passengers who had missed
their flights.[15]

Air Deccan operated a point-to-point route

network from seven base airports.[15] 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.[19] For
reservations, the airline utilised multiple
channels. Passengers could book tickets
through travel agents, on the Internet or
through call centres.[20] 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.[21] Air Deccan also avoided the
cost of printing tickets; passengers or
travel agents were required to do so off
the Internet.[20]

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.[22] Dispelled the
rumours, claiming "[Mallya and I] are from
different planets; he is from Venus, I am
from Mars".[23] Gopinath believed it was
impossible to merge the airlines' separate
business models; Kingfisher was a full-
service carrier.[24] 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.[25] Gopinath had changed his mind
upon understanding that the two airlines
would continue to function
independently.[24][26] In addition, he needed
to raise funds;[27] Air Deccan had lost
₹213 crore (US$27 million) during the
quarter ending 31 March 2007.[26] Air
Deccan was rebranded Simplifly Deccan in
October 2007 and adopted Kingfisher's
livery and flight attendant uniform.[28]

In December 2007, the airlines announced

that they would merge into a single
corporate entity while maintaining
separate brands.[29] The airline business of
Kingfisher Airlines Ltd was merged into
Deccan Aviation Ltd on 1 April 2008.[a] The
charter business of Deccan Aviation Ltd
was spun off into a separate company
known as Deccan Charters Ltd.[31] The
combined company utilized Simplifly
Deccan's operating permit, allowing it to
launch international flights in 2008;
Simplifly Deccan would complete five
years of operation that year.[b][33] 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.[34][35]

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.[36]
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.[36][37]