Air Deccan
Encyclopedia
Kingfisher Red, known formerly as Simplifly Deccan and prior to that as Air Deccan, is a low-cost brand run by Kingfisher Airlines
. It is headquartered in Mumbai
, India
.
Passengers can earn frequent flyer miles (called King Miles) for tickets booked on Kingfisher Red through the King Club loyalty program run by its parent Kingfisher Airlines. In-flight reading material is limited to a special edition of Cine Blitz magazine printed exclusively for Kingfisher Red.
On 28th September 2011, the Chairman of Kingfisher Airlines
Vijay Mallya
announced that the company would soon stop operations of Kingfisher Red as it did not believe in low-cost operations any longer.
. It was started by Captain G. R. Gopinath and its first flight took off on 23 August 2003 from Hyderabad to Vijaywada. 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 "Simpli-fly," 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 area
s like Bangalore and Chennai
.
On 25 January 2006, Deccan went public by filing a red herring prospectus
with the Securities and Exchange Board of India
. Deccan planned to offload 25 percent of its stake in the initial public offering
(IPO) that opened on 18 May. However, due to the stock market
downturn at that time, Air Deccan's IPO barely managed to scrape through, even after extending the issue closing date and reducing the price band.
On 27 February 2007, Air Deccan switched to US
-based airline reservations hosting service provider Radixx International, becoming the second major domestic Indian carrier after GoAir to switch to the Radixx Air Enterprise reservation system. Before moving to the Radixx reservation system, Air Deccan was using a reservation system provided by the Delhi-based InterGlobe Technologies.
Less than expected growth in the Indian aviation sector coupled with overcrowding and the resultant severe competition between airlines resulted in almost all the Indian carriers, including Air Deccan, running into heavy losses. After initially trying to get in fresh capital for running the airline, Captain Gopinath eventually succumbed to pressures for consolidation. On 19 December 2007, it was announced that Air Deccan would merge with Kingfisher Airlines. Since Indian aviation regulations prohibited domestic airlines from flying on international routes until they had operated in the domestic market for five years, it was decided to instead merge Kingfisher Airlines into Deccan Aviation, following which Deccan Aviation would be renamed Kingfisher Airlines. This was because Air Deccan was the older of the two airlines, and therefore would be the first to qualify for flying on international routes. 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.
After the merger, Air Deccan switched to the Sabre reservation system
used by Kingfisher Airlines, thereby replacing the previous solution provided by Radixx.
president, M. Venkaiah Naidu, the then Minister of State
for Civil Aviation
, Rajiv Pratap Rudy
, and Telugu Desam Party
leader K. Yerran Naidu. This was operated using an ATR 42
aircraft.
Again, on 29 March 2004, another Air Deccan flight from Goa
to Bangalore had to return back half an hour after take off as smoke filled the cabin. This aircraft was also an ATR 42.
On 11 March 2006, an Air Deccan flight travelling from Coimbatore
to Bangalore made a heavy landing on the runway at Bangalore's HAL Airport and skidded off the runway. The aircraft was carrying 44 people (40 passengers and 4 crew). Although there were no fatalities, the aircraft, an ATR 72
, was severely damaged.
as Kingfisher Red, the airline faces stiff competition from SpiceJet
, IndiGo Airlines
, Jet Lite and GoAir. The growth of these low-cost air carriers has also forced mainstream domestic Indian airlines to lower their fares.
, Air Deccan reported a net loss of Rs 3.4 billion ($74 million) for the 15-month period between 1 April 2005 and 30 June 2006. It originally hoped to break even in the current financial year but executives are quoted in the local media as saying it now does not expect to post profits until 2008 as a result of intense competition following the launch of several other new airlines. Air Deccan has now turned profitable on the back of a strong October–December 2006 quarter, posting a profit of Rs. 9.64 crore
s (a little more than US$ 2 million).
family and ATR aircraft will operate 537 flights to 69 Indian cities, "whilst taking advantage of unparalleled synergy benefits arising from a common fleet of aircraft," according to Kingfisher. "For the near future, Kingfisher will continue to serve the corporate and business travel segment, while Air Deccan will focus on serving the low-fare segment, but with improved financial prospects for both carriers," Kingfisher added. Speaking to reporters yesterday, UB Group head Vijay Mallya said there were no plans to launch an IPO "at this stage" and that UB Group would have no problem funding the acquisition.
In August 2008, it was announced the airline will further change its branding to Kingfisher Red and will begin operating under Kingfisher's IATA code IT.
Kingfisher Airlines
Kingfisher Airlines is an airline group based in India. Its head office is Kingfisher House in Vile Parle , Mumbai. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red....
. It is headquartered in Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
.
Passengers can earn frequent flyer miles (called King Miles) for tickets booked on Kingfisher Red through the King Club loyalty program run by its parent Kingfisher Airlines. In-flight reading material is limited to a special edition of Cine Blitz magazine printed exclusively for Kingfisher Red.
On 28th September 2011, the Chairman of Kingfisher Airlines
Kingfisher Airlines
Kingfisher Airlines is an airline group based in India. Its head office is Kingfisher House in Vile Parle , Mumbai. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red....
Vijay Mallya
Vijay Mallya
Vijay Mallya is an Indian liquor and airline baron. The son of industrialist Vittal Mallya, he is the chairman of the United Breweries Group and Kingfisher Airlines. His United Spirits is world's second largest liquor maker, by volume...
announced that the company would soon stop operations of Kingfisher Red as it did not believe in low-cost operations any longer.
History
Formerly known airline was previously operated by Deccan AviationDeccan Aviation
Deccan Aviation is an aviation company based in Bangalore, India that operates helicopter and fixed-wing charter services. Its main base is HAL Bangalore International Airport.-History:...
. It was started by Captain G. R. Gopinath and its first flight took off on 23 August 2003 from Hyderabad to Vijaywada. 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 "Simpli-fly," 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
Mangalore
Mangalore is the chief port city of the Indian state of Karnataka. It is located about west of the state capital, Bangalore. Mangalore lies between the Arabian Sea and the Western Ghat mountain ranges, and is the administrative headquarters of the Dakshina Kannada district in south western...
, Madurai
Madurai
Madurai is the third largest city in the Indian state of Tamil Nadu and one of the oldest continuously inhabited cities in the world. It served as the capital city of the Pandyan Kingdom. It is the administrative headquarters of Madurai District and is famous for its temples built by Pandyan and...
and Visakhapatnam
Visakhapatnam
Visakhapatnam is a major sea port on the south east coast of India. With a population of approximately 1.7 million, it is the second largest city in the state of Andhra Pradesh and the third largest city on the east coast of India after Kolkata and Chennai. According to the history, the city was...
from metropolitan area
Metropolitan area
The term metropolitan area refers to a region consisting of a densely populated urban core and its less-populated surrounding territories, sharing industry, infrastructure, and housing. A metropolitan area usually encompasses multiple jurisdictions and municipalities: neighborhoods, townships,...
s like Bangalore and Chennai
Chennai
Chennai , formerly known as Madras or Madarasapatinam , is the capital city of the Indian state of Tamil Nadu, located on the Coromandel Coast off the Bay of Bengal. Chennai is the fourth most populous metropolitan area and the sixth most populous city in India...
.
On 25 January 2006, Deccan went public by filing a red herring prospectus
Red herring prospectus
A red herring prospectus is a document submitted by a company who intends on having a public offering of securities...
with the Securities and Exchange Board of India
Securities and Exchange Board of India
The Securities and Exchange Board of India is the regulator for the securities market in India.-History:It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament...
. Deccan planned to offload 25 percent of its stake in the initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO) that opened on 18 May. However, due to the stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
downturn at that time, Air Deccan's IPO barely managed to scrape through, even after extending the issue closing date and reducing the price band.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
-based airline reservations hosting service provider Radixx International, becoming the second major domestic Indian carrier after GoAir to switch to the Radixx Air Enterprise reservation system. Before moving to the Radixx reservation system, Air Deccan was using a reservation system provided by the Delhi-based InterGlobe Technologies.
Less than expected growth in the Indian aviation sector coupled with overcrowding and the resultant severe competition between airlines resulted in almost all the Indian carriers, including Air Deccan, running into heavy losses. After initially trying to get in fresh capital for running the airline, Captain Gopinath eventually succumbed to pressures for consolidation. On 19 December 2007, it was announced that Air Deccan would merge with Kingfisher Airlines. Since Indian aviation regulations prohibited domestic airlines from flying on international routes until they had operated in the domestic market for five years, it was decided to instead merge Kingfisher Airlines into Deccan Aviation, following which Deccan Aviation would be renamed Kingfisher Airlines. This was because Air Deccan was the older of the two airlines, and therefore would be the first to qualify for flying on international routes. The merger became effective April 2008, with Vijay Mallya
Vijay Mallya
Vijay Mallya is an Indian liquor and airline baron. The son of industrialist Vittal Mallya, he is the chairman of the United Breweries Group and Kingfisher Airlines. His United Spirits is world's second largest liquor maker, by volume...
becoming the Chairman
Chair (official)
The chairman is the highest officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office is typically elected or appointed by the members of the group. The chairman presides over meetings of the assembled group and conducts its business in an...
and CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of the new company, while G. R. Gopinath became its Vice-Chairman.
After the merger, Air Deccan switched to the Sabre reservation system
Sabre (computer system)
Sabre Global Distribution System , owned by Sabre Holdings, is used by more than 55,000 travel agencies around the world with more than 400 airlines, 88,000 hotels, 24 car rental brands, and 13 cruise lines...
used by Kingfisher Airlines, thereby replacing the previous solution provided by Radixx.
Accidents and incidents
Air Deccan had an inauspicious start to its operations on 24 September 2003, with its very first flight from Hyderabad to Vijaywada catching fire on the runway when it was taxiing before take-off. That flight was carrying several dignitaries such as the then BJPBharatiya Janata Party
The Bharatiya Janata Party ,; translation: Indian People's Party) is one of the two major political parties in India, the other being the Indian National Congress. Established in 1980, it is India's second largest political party in terms of representation in the parliament...
president, M. Venkaiah Naidu, the then Minister of State
Minister of State
Minister of State is a title borne by politicians or officials in certain countries governed under a parliamentary system. In some countries a "minister of state" is a junior minister, who is assigned to assist a specific cabinet minister...
for Civil Aviation
Civil aviation
Civil aviation is one of two major categories of flying, representing all non-military aviation, both private and commercial. Most of the countries in the world are members of the International Civil Aviation Organization and work together to establish common standards and recommended practices...
, Rajiv Pratap Rudy
Rajiv Pratap Rudy
Rajiv Pratap Rudy is a Member of Parliament, Rajya Sabha from Bihar, India. He is a National Spokesperson of the Bharatiya Janata Party...
, and Telugu Desam Party
Telugu Desam Party
Telugu Desam Party or TDP is a regional political party in India's Andhra Pradesh state. It was founded by former Telugu film star N. T...
leader K. Yerran Naidu. This was operated using an ATR 42
ATR 42
-Civil operators:The largest operators of the ATR-42 are FedEx Express, Airlinair, TRIP Linhas Aéreas,and Mexico City-based Aeromar respectively. Number of aircraft as of 2010:Some 70 other airlines operate smaller numbers of the type....
aircraft.
Again, on 29 March 2004, another Air Deccan flight from Goa
Goa
Goa , a former Portuguese colony, is India's smallest state by area and the fourth smallest by population. Located in South West India in the region known as the Konkan, it is bounded by the state of Maharashtra to the north, and by Karnataka to the east and south, while the Arabian Sea forms its...
to Bangalore had to return back half an hour after take off as smoke filled the cabin. This aircraft was also an ATR 42.
On 11 March 2006, an Air Deccan flight travelling from Coimbatore
Coimbatore
Coimbatore , also known as Kovai , is the second largest city in the Indian state of Tamil Nadu. It is a major commercial centre in Tamil Nadu and is known as the "Manchester of South India"....
to Bangalore made a heavy landing on the runway at Bangalore's HAL Airport and skidded off the runway. The aircraft was carrying 44 people (40 passengers and 4 crew). Although there were no fatalities, the aircraft, an ATR 72
ATR 72
The ATR 72 is a twin-engine turboprop short-haul regional airliner built by the French-Italian aircraft manufacturer ATR. ATR and Airbus are both built in Toulouse, and share resources and technology...
, was severely damaged.
Competitors
Air Deccan's phenomenal growth spurred the entry of more than half a dozen low-cost air carriers in India. In its present AvatarAvatar
In Hinduism, an avatar is a deliberate descent of a deity to earth, or a descent of the Supreme Being and is mostly translated into English as "incarnation," but more accurately as "appearance" or "manifestation"....
as Kingfisher Red, the airline faces stiff competition from SpiceJet
SpiceJet
SpiceJet is a low-cost airline headquartered in Gurgaon, India. It began service in May 2005 and by 2008, it was India's second-largest low-cost airline in terms of market share. SpiceJet was voted as the best low-cost airline in South Asia and Central Asia region by Skytrax in...
, IndiGo Airlines
IndiGo Airlines
IndiGo is a private, low-cost airline based in Gurgaon, Haryana, India. Since commencing operations in August 2006, it has established itself as one of India's leading airlines using its model of efficient, low-cost operations and by attracting customers with low fares.Following Indian regulations,...
, Jet Lite and GoAir. The growth of these low-cost air carriers has also forced mainstream domestic Indian airlines to lower their fares.
Revenue
In a statement to the National Stock Exchange of IndiaNational Stock Exchange of India
The National Stock Exchange is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization...
, Air Deccan reported a net loss of Rs 3.4 billion ($74 million) for the 15-month period between 1 April 2005 and 30 June 2006. It originally hoped to break even in the current financial year but executives are quoted in the local media as saying it now does not expect to post profits until 2008 as a result of intense competition following the launch of several other new airlines. Air Deccan has now turned profitable on the back of a strong October–December 2006 quarter, posting a profit of Rs. 9.64 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....
s (a little more than US$ 2 million).
Acquisition by Kingfisher Airlines
Kingfisher Airlines' parent company United Breweries Group acquired a 26 percent stake in Air Deccan's parent company Deccan Aviation. The combined fleet of 71 Airbus A320Airbus A320
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
family and ATR aircraft will operate 537 flights to 69 Indian cities, "whilst taking advantage of unparalleled synergy benefits arising from a common fleet of aircraft," according to Kingfisher. "For the near future, Kingfisher will continue to serve the corporate and business travel segment, while Air Deccan will focus on serving the low-fare segment, but with improved financial prospects for both carriers," Kingfisher added. Speaking to reporters yesterday, UB Group head Vijay Mallya said there were no plans to launch an IPO "at this stage" and that UB Group would have no problem funding the acquisition.
Rebranding
In October 2007, after the acquisition by Kingfisher Airlines, Air Deccan was renamed "Simplifly Deccan" with its new tagline being "The choice is simple". The old logo was replaced by the Kingfisher logo and the same font of Kingfisher Airlines was also used on Simplifly Deccan. The old yellow and blue colors of Air Deccan were replaced by Kingfisher Airlines's red and white, supposedly to give the same premium look and feel to Deccan as well. The check-in counters at airports as well as the crew uniforms now had the same red and white colors as those for Kingfisher Airlines. The new look airline also promised excellent on-time performance, a wider network and "little delights all the way". Check-in staff would no longer be outsourced, but managed by the airline's own employees, thereby "increasing accountability and improving service delivery," said Mr Mallya. He also announced that the new airline would slowly phase out the ageing ATR 42 and A320 planes and replace them with entirely new aircraft. Changes were also made in the flight schedule of Simplifly Deccan airlines to better align with that of Kingfisher Airlines. According to agencies, the re-branding was expected to cost around Rs 15 crore (approximately $3.8m).In August 2008, it was announced the airline will further change its branding to Kingfisher Red and will begin operating under Kingfisher's IATA code IT.