In 2014 the main four companies doing airline business in India are Away Air India Indian Airlines and Sahar Airlines but these four companies also tell you what full service means see if you understand that these companies should provide good travels to the passengers traveling in their flights along with meals, alcohol and entertainment in their flights some also provide luxury and premium facilities so all these cost money so they add that money to the prices of flight tickets and the flight journey has become a dream not only for the rich but also for the poor and the middle class. The prices of flight tickets are increasing but because of this no common man can travel by plane but a retired army officer noticed this and with the idea that every common man in the country should travel by plane in 2003 a man named Captain GR Gopinath founded a company that is air Deccan and this company is the first time in our country by giving flight tickets for rupees many poor people were allowed to board the flights but the company started in 2003 but in a very short time the company has grown very fast gaining more than 20 percentage market share in the Indian airlines industry.
But if we cut it the company disappeared from the Indian Airlines industry in 2007 but what is the real reason for this If Vijay Mallya tries to buy Air Tekkali in the movie Haddura Chandra Mahesh will be shown as he did but in the real story captain Gopinath sold the company to Vijay Mallya in 2007 and by the time 2012 came this company was closed permanently but here is the question and why did the company go into losses and why did Captain Gopinath sell this company to original Vijay Mallya after the failure of air deccan Gopinath founded another airline company named Deccan 360 after completing his graduation from NDA he worked for eight years in the Indian army so at the age of 28 he took retirement from the army and went to his native village where he used scientific methods and farmed for many days. Immediately before starting an airline company he did a complete research about it what was the actual market situation and where was the scope to start his business and finally he started a private helicopter service in 1997 the same Deccan Aviation deccan Aviation became the largest private helicopter charter company in India and Sri Lanka
It means a company that rents helicopters but at the time when this chatal services business was running well an idea came in the mind of Captain Gopinath that is Low Cost Airlines as we talked about in the video starting at the time of 2003 how much money did the customers of many companies doing airline business in India spend on their flights However there are those who think that they should have a good travel experience but no one thinks that they should provide cheap tickets and get more people on flights that is the business here is very simple they started that they wanted to make the poor and middle class people who are more than 90 percent of the country travel in lights but actually it is very difficult because as I said in the previous Indigo study they have to spend only 50 percent of the cost of running a flight. In the remaining 50 percentage they have to give salaries to the staff maintain the flights run the business pay the fees to the airports buy new flights do the marketing for the company and also earn profits from it. It is very difficult to run a line company
And it is even more difficult to make profits in it so at that time any company doing airline business had no idea of giving cheap flight tickets but this is where Captain Gopinath introduced a new process in the Indian Airlines industry and established a company called Air Deccan in 2003 until then Air India Sahara Airlines used to provide services to attract customers to Indian Airlines and Company due to which the flight tickets were also very expensive but Gopinath All these were ticketed and the concept of first time low cost was introduced in India. One important thing to remember here is that at the time of 2003 the companies working on low cost in India were ruling over 80 percentage of the market like Indigo and Spice Jet but the original company was Gopinath. Let us see some of the strategies implemented by in order to reduce the ticket prices of his flights the ticket prices should always be very low so to reduce the ticket prices he does not provide any extras in addition to the flights he does not collect extra money from the customers so for this reason he introduces 1 tickets for marketing to the ticket company.
What was done is that instead of selling all the seeds in the flights at the same price they were divided into several times and the ticket prices were up to 500 and 6000 for those who booked before everyone else for one rupee but aside from how many people get a ticket for one rupee here think how well many passengers book flight tickets to get those tickets. Strategy No 2 Online booking If anyone wants to book flight tickets in 2003 time some people book through private agencies to book that travel agencies charge some commission from the company. So again to cover the commissions the airline companies used to put those bills on the flight tickets so Captain Gopinath who noticed this booked the flight tickets online himself designed
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