Air Deccan is going in for a brand repositioning. Following its 26% stake sale to Vijay Mallya’s Kingfisher Airlines (KFA) for Rs 550 crore.
Will transform into a value-based low cost carrier with focus on service
KOLKATA: Air Deccan is going in for a brand repositioning. Following its 26% stake sale to Vijay Mallya’s Kingfisher Airlines (KFA) for Rs 550 crore, it is looking to become a value-based, low-cost carrier with enhanced customer focus.
The idea now is to win over an increasing number of corporate travellers in addition to its traditional target base, which is mainly the first-time air traveller.
“We will straddle and balance value-based services with affordable and competitive fares,” said an Air Deccan source.
Working towards this end, the carrier has decided to replace all outsourced staff at airports with Air Deccan employees “to ensure a higher level of service delivery.”
The carrier is also looking to continually track and monitor service through a Service Tracking Monitor feedback form.
Earlier, passengers had the option to air their views on the carrier’s website.
Plans are afoot to offer complimentary water on board and meal options available on board will be enhanced to include hot meals.
From mid-October, the carrier will sport new interiors, and plush leather seats in a bid to promise maximum style in the LCC space.
International credit cards, too, have been reintroduced.
New Kingfisher-Deccan passenger coaches will be introduced at all airports in phases.
Reaping the benefits of synergy derived from combined operations with KFA, the combined fleet of 71 aircraft (A320s and ATRs) is expected to result in better resource utilisation, cost-cutting and disruption management.
For instance, at a small airport that needs only two engineers, both KFA and Deccan need not post their personnel separately.
The carrier also claims to have been able to jointly achieve 42% savings in insurance premium.
Plans are reportedly on to withdraw Air Deccan from all loss-making routes and position it on the non-metro routes, leaving the metro sectors to the full service KFA for higher revenue generation.
Said the source: “A passenger can travel Mumbai-Delhi on Kingfisher and then fly onward to, say, Kullu on Deccan.”
Air Deccan, according to analysts, has been incurring heavy losses on the metro sector mainly because of low fares, various promotional offers and high operational costs. The carrier saw a 57% increase in net loss to Rs 173.08 crore for the fourth quarter ending June 30, 2007.
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