Mallaya needs to let go Deccan
According to me, the options available to Vijay Mallaya were just two when he bought Air Deccan which are as follows:
(a) Merge Deccan with Kingfisher and run just one airline or
(b) Run two airlines. One Deccan as a low fare airline and the other Kingfisher as a premium airline. For this option to succeed, the customer should not get the feeling the Kingfisher and Deccan are the same.
I was very happy to learn sometime back that Deccan is being shut and merged with Kingfisher. I thought Vijay Mallaya has realized that Kingfisher cannot mean two oposite things – low fare airline as well as a premium airline. But today I saw the full page advertisement that Kingfisher will have a low fare airline brand called “Kingfisher Red.” I think Vijay Mallaya is going to commit harakari. This is the third time he is trying to play around with Deccan as a brand. First, he went through a makeover exercise for Deccan and repainted all the planes and released advertisements. Then he rebranded Deccan as “Simplifly Deccan.” Now he want to call it “kingfisher Red.” If Vijay Mallaya thinks changing names, painting planes etc will get him where he wants to go, he is in for a big surprise. If he wants to run a no-frills airline, why not continue with Air Deccan. And if Air Deccan is bringing along too much unwanted baggage, he can establish a separate no frills brand and let it operate as a separate company. He can still obtain the backend synergies that he wants. All these brand extensions are not going to work. It will be very difficult to operate a low cost and a premium airline brands under the same roof.
Maybe Vijay should take a cue from Jet Airways which is merging Jetlite with the parent company.
I will keep a watch. You can too. I can safely predict that the next step for Vijay Mallaya would be to discard the low cost airline in favour of the premium airline.
Avinash Narula
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Comments
Excellent news.
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