Deccan plans to reposition itself as value carrier soon

Mumbai: Marking a strategic shift from its no frills business model, Deccan Aviation Ltd, which operates India’s largest low-fare airline, is planning to reposition itself as value carrier—a place between full service carrier (that offers food on board and other services) and low-cost carrier. It will soon offer light food and refreshments on board.
A formal announcement on its value carrier status will be made at the 12th annual general meeting of Deccan on 19 December in Bangalore.
In May, United Breweries (Holdings) Ltd, promoted by Vijay Mallya, who also owns full service carrier Kingfisher Airlines, had picked up a 26% stake in Deccan Aviation. Since, it has been increased to 46%. Post acquisition, UB Group rebranded Deccan as Simplifly Deccan and introduced red and white colours with the Kingfisher bird logo at every passenger touch point including the aircraft, website, passenger coaches, ticketing counters and uniforms for ground and cabin crew.
Despite the imminent announcement, Ramki Sundaram, officiating CEO of Deccan Aviation, denied there were any such plans.
One industry analyst concluded that it would typically cost an airline about Rs70 per passenger to offer light refreshments, but introducing free food would allow the airline to hike ticket prices from Rs300 to Rs400 a passenger.
16/12/07 P.R. Sanjai/Livemint

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Categories: Simplifly Deccan Dec 2007