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In-flight snack served on Kingfisher Red


Kingfisher Red, known formerly as Simplifly Deccan and prior to that as Air Deccan, is a low-cost airline run by Kingfisher Airlines. It is headquartered in Bangaloremarker, Indiamarker.

Kingfisher Red is currently the only Indian low-cost airline to provide complimentary in-flight meals and bottled water to its passengers. Also, 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.

History

Formerly known as Air Deccan, the airline was previously operated by Deccan Aviation. It was started by Captain G. R. Gopinath and its first flight took off on 23 August 2003 from Hyderabadmarker to Vijaywadamarker. 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/her lifetime." Air Deccan was the first airline in India to fly to second tier cities like Hubballimarker, Mangaloremarker, Maduraimarker and Visakhapatnammarker from metropolitan areas like Bangalore and Chennaimarker.

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 May 18. 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. And when it finally listed on the stock market, its share price suffered a beating and dropped to about 50 percent of the issue price of Rs 148.65.

Air Deccan logo
Simplifly Deccan logo


On 27 February 2007, Air Deccan switched to USmarker-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.

Destinations

Fleet

Accidents and Incidents

Air Deccan had a rather 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 BJP 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 an ATR 42 aircraft.

Again, on 29 March, 2004, another Air Deccan flight from Goamarker 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 Coimbatoremarker to Bangalore made a heavy landing on the runway at Bangalore's HAL Airportmarker 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.

Competitors

Air Deccan's phenomenal growth spurred the entry of more than half a dozen low-cost air carriers in India. In its present avatar as Kingfisher Red, the airline faces stiff competition from SpiceJet, IndiGo Airlines and GoAir. The growth of these low-cost air carriers has also forced mainstream domestic Indian airlines to lower their fares.
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


Revenue

In a statement to the National Stock Exchange of India, Air Deccan reported a net loss of Rs 3.4 billion ($74 million) for the 15-month period between 1 April 2005 and 30 June 2006. It originally hoped to break even in the current financial year but executives are quoted in the local media as saying it now does not expect to post profits until 2008 as a result of intense competition following the launch of several other new airlines. Air Deccan has now turned profitable on the back of a strong October-December 2006 quarter, posting a profit of Rs. 9.64 crores (a little more than US$ 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 A320 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, post the acquisition by Kingfisher Airlines, Air Deccan was renamed to 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 (approx. $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.

References

  1. Deccan IPO scrapes through
  2. Air Deccan migrates to Radixx reservation system
  3. Kingfisher to merge into Air Deccan
  4. Deccan international flights from August 2008
  5. Fire grounds Air Deccan
  6. Major plane accident averted
  7. Low-cost flight under a cloud
  8. Air Deccan aircraft skids off runway
  9. Deccan to be rebranded Kingfisher Red
  10. Air Deccan is now Kingfisher Red


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