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2.12 

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Why is Air Deccan crashing?
Dec 01, 2006 09:07 PM 3263 Views

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This is an attempt to provide some constructive criticism. As I understand Air Deccan was intended to provide low cost air travel, in exchange for what other airlines offer as “frills” – items such as free food, soft drinks and smiles on the flight. The airline flew out under the facade of a “low-cost” USP. It is well known that the erstwhile Indian consumer has traded quality for price and lowered prices in exchange for frills would ensure larger volumes and a big bite into the domestic air market. Air Deccan was probably right in its initial reasoning. But things went wrong somewhere along and instead of profits, the airline enountered a sharp nose dive by making a loss of Rs. 340 crores in its last financial year (ending June 2006). Why did this happen? The answer that seems most obvious is – “poor attitude to the customer”.


In any type of business the customer is God. He is so because he is the one who keeps you in business, being its very purpose. And he is particularly so when you have to compete for his attention with some 10 other equally (if not more) capable providers. It is strange that notwithstanding all their hard work and effort, Air Deccan has overlooked this basic principle of doing business.


A year back, my brother, a travelling businessman living by tight schedules, had a ticket on an Air Deccan Mumbai-Chennai flight. At the check-in counter he was told that the flight would be delayed by a couple of hours as the aircraft had to come in from another city. As he waited patiently along with a few other passengers, he was suddenly informed that the flight was cancelled due to a “technical snag”. Air Deccan offered to refund the ticket fare. Well, technical snags do happen sometimes, but a little enquiry from inside sources revealed that the technical snag reason was just a cover-up for the fact that the particular flight did not have enough ticket sales to fill the aircraft, something that was also evident from the number of passengers who were waiting. In our country you sometimes see private bus operators in little towns and villages resorting to this strategy when their bus does not get filled to its doors.


What should a traveller, who has booked his ticket well in advance (as several of the airline’s passengers do, to avail of “low costs”), do when the airline suddenly shuts the door on him? As per Air Deccan’s policy, if a flight is cancelled for whatever reason even with no advance intimation, the only consolation offered is a refund of the ticket money. You are then left to your own to figure out what you should next do. Air Deccan does not make any attempt to accommodate you on their next flight or on a flight of another airline. Nor does it concern itself with the time and money you spent in coming to the airport or that you have to spend till you land yourself an alternate arrangement to reach your destination. And you are really taken to the cleaners if you realize that you do not have enough extra money with you to get a seat on another airline (which would be higher since you are asking for a ticket at the last minute), nor is such an expense within your budget, nor are train tickets available. Air Deccan’s justification reads clear and simple - “we are giving you a chance to fly at a lower cost, so whats wrong if we mess up your happiness once in a while”.


Well, our story took an interesting turn when the passengers including my brother united and launched a protest in the check-in lounge at Mumbai airport. A couple of influential passengers called up TV channels and newspapers in Mumbai and one person called up and spoke to Capt Gopinath, the airline’s MD in Bangalore. Threatened with negative (but truthful) publicity, the staff finally relented to accommodate them on a Jet Airways flight leaving soon after.


This is of course only one bad experience amongst several others, as plenty of reviews of this very site will testify. Air Deccan must realize that lowering the cost does not justify torturing the customer. Ironically (and most regular flyers have realized this by now) Air Deccan’s costs are only marginally (not significantly) lesser than other airlines and that again stands out as being out-of-tune with the airline's advertising claims. What with SpiceJet, Go Air, Paramount, Indigo and even Indian and Jet Airways offering competitive fares with better service, Air Deccan’s low cost is hardly a USP anymore. No wonder then that the airline has begun the plummet.


The average Indian customer who has grown up travelling in over-crowded buses and trains, does not really miss the free food and drink. To him, it is not an essential anyway. Yet, he will consider essential timely service and sensible back-up support and if that is ensured lowered costs will become a genuine differentiator for the airline. The customer’s refrain is “Its alright if you don’t feed me free of cost, its even alright if you don’t smile at me, but for the money I am paying, atleast get me to my destination… at the right time”.


I hope Air Deccan realizes this and protects itself from kissing the ground too soon.


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