With daily sales in excess of Rs. 15 million as of 2005, and growing steadily, Air Deccan had redefined the paradigm of air travel in India. Until the launch of Air Deccan, air travel was essentially meant for the affluent sections of the society, owing to the high price of tickets. Air Deccan transformed the aviation landscape in the country. Air Deccan demonstrated that air travel if planned well in advance, is often cheaper than travel by second-class train. While there are many low-cost airlines the world over, especially in the USA, Europe, Far East and Australia, the challenges of replicating this model in India were not trivial. Three powerful established players (Indian Airlines, Jet Airways and Sahara) were not amused with this upstart airline and with their deep connections in the political and bureaucratic systems of the country, wanted to scuttle the start-up airline. This case demonstrates intense constancy of purpose and extreme tenacity of the promoter of the venture, Capt. Gopinath. Despite heavy odds, including lack of finances, he and his team came up with creative solutions at every step, to overcome the hurdles, bootstrapping his way all along the journey. His entrepreneurial style warrants close study to draw out useful lessons for any aspiring entrepreneur.

However, it is fair to say that while the progress had been spectacular, Capt. Gopinath had to face challenges on multiple fronts. While he had a successful launch of the low-cost airline, it failed to have continued success, culminating in its eventual sale. Continued growth and success of Air Deccan required a clear strategy, which is perhaps where Capt. Gopi made some errors of judgment. This part of the case discussion can focus on the key challenges faced by Capt. Gopinath and what he could have done differently to make the airline a continued success and leverage the first mover advantage he had in launching India's first LCA. The issue becomes even more relevant given that several late LCA entrants in India, notably Indigo and to a lesser extent, Spicejet seem to have made the right moves, although it followed on the heels of Air Deccan.