Not many people dream like the way Captain G. R. Gopinath did, the dream of connecting the places hitherto ignored, the dream of making it affordable for every citizen of his country to fly at least once in his life time. India initially had not been supportive of nationalist reforms and until the late 1990s; things were running the way they always had. Had the things remained like that, deccan airways would have only a dream. That was when Government of India offered more opportunities of entrepreneurship. Caption G.R.Gopinath took the chance and started the first private chartered helicopter service of India. With frequent trips to remote parts of the country, Gopinath realized the need of an airline that connects the remote areas of India, where no airline has ever been. Thus air deccan happened. This was the first low cost airline of India. At more than 230 flights a day to more than 50 destinations, indeed deccan airlines has accomplished what it was supposed to. It actually succeeded at becoming the common man’s airline.
Gopinath realizes the potential of the business, the changes it can bring about and his own limitations. Hence when Mallya of kingfisher airlines offered a merger with the position of CEO to Gopinath, he took it after pondering for quite a while. As of August 2008, the airlines will merge, with air deccan airlines being renamed as kingfisher airlines. Rumor has it that where the air deccan will cover the routes of Asia, kingfisher will do europe and US.
Since Mallya had gain because kingfisher is younger as compared to deccan airlines, the merger will allow kingfisher to delve into the international routes immediately, rather than waiting for the recommended period. It is due to this reason that today Gopinath owes 62 % while Mallya owes the 48 % of the deccan airways.
The base of the air deccan will continue to be Bangalore even after the merger. Gopinath was quite adamant about the fact that the original purpose of the airline should not be sabotaged. Therefore Mallya has readily agreed to continue the flights of the previous air deccan airlines to areas as remote as Madurai and Hubli.
The phenomenal growth of deccan airlines also sabotaged the market of other small domestic airlines like indigo and go air. However the over all growth of these low air fare airlines had indeed induced tough competition for the biggies like sahara airlines and Indian airlines, as a result of which they too had to lower their air fare. Mallya realized the danger before it could threaten him and offered the merger. The air fare of the new line of kingfisher that was the deccan airways earlier, will continue to be low fare and the earlier kingfisher division will continue to be corporate.
The air deccan airlines have fore gone their colors of blue and yellow for Mallya’s red and white, the expenses of the rebranding being borne by the united breweries of Mallya.
The only trouble this merger has created so far, was in the indian premier league. The Hyderabad deccan chargers were expecting to be backed by the air deccan. However, Mallya and united breweries are owners of the Royal Challengers Bangalore team and Gopinath too favored that since deccan airways are based in Bangalore, they too shall endorse the team. How ever, the deccan chargers were disappointed, even though Gopinath never mentioned his plans of joining with deccan airlines in collaboration with the deccan chronicles. It was all a big confusion. The air deccan will in the meanwhile continue serving the poor populace of India, their target group, and their inspiration.
