Book Review
Book Review
RAMASWAMY
INSTITUTE OF HIGHER
EDUCATION
BOOK REVIEW
FROM : TO :
PUNEET KUMAR IR
S U D H A M A’ A M
N I K H I L YA D AV H H
A D I T H YA A B
AUTHOR: G R GOPINATH
From a small village near Gorur, Hassan dist
Gopinath's father Ramaswamy Iyengar, a school teacher and a Kannada novelist
After school, he earned a commission in the Indian Army, earning the rank of Captain.
He spent eight years in the army and fought in the 1971 Bangladesh Liberation War.
The army life seemed to somehow tie him down. He took early retirement from Indian Army, at the age of 28
After retirement he established an ecologically sustainable sericulture farm; his innovative methods earned him
the Rolex Laureate Award in 1996.Next, he started the Malnad Mobikes (Enfield dealership) and opened a hotel in
Hassan.
In 1997 he co-founded Deccan Aviation, a charter helicopter service. In 2003, Gopinath founded Air Deccan, a low
cost airline
Air Deccan - Cutting Costs, Not Corners
Common Man :
The Brand Ambassador for Air Deccan, the people’s airline is Mr. R.K Laxman’s ‘Common Man’
Free Tickets :
Air Deccan A320-200 cabin. The grey seats
in all Air Deccan aircraft have been changed
to red as part of a rebranding effort after the
takeover by Kingfisher Airlines
Entrepreneurial Strategies
Cost Leadership Strategy:
◦ Single flight Attendant.
◦ 48 seater aircraft to lower maintenance and service fee.
◦ Unique online reservation system.
◦ No frills airline but food/beverages can be bought inside the
aircraft.
◦ Prices are almost 50% lower than full service airline.
Cont.….
Differentiating Strategy:
Single passenger class system.
Tie ups with HPCL and Reliance Web World.
Provides flights even to the hinterland.
Allocation of prices to various percentage of seats.
Focus Strategy:
Frequent Business Travellers.
AC Train Travellers.
Innovative Techniques
Flight food and drinks were served for a price.
Reduced cost of printing and processing.
Cabin crew consisted of single flight attender.
No toll-free number.
Advertisement as a tool to earn revenue.
Aircraft utilization by investing in technology which made flights fly
for more hours as compared to the competitors.
Major Risks
Increase in Competition
◦ Excess capacity could lead to price wars
Oil Price
◦ Extremely vulnerable to oil price fluctuations due to government regulations on price hedging
Regulatory risk
◦ A collapse of the current coalition government could trigger significant changes in India’s
economic liberalization and deregulation policies
Light on Naresh Goyal: Founder and CEO Of JET AIRWAYS