The dichotomy and the conflict between the two approaches is manifestly evident conveying a clear message to the industry that a full service and low-cost carrier are unlikely to coexist and prosper when operated by one airline under a common banner and brand. No one seems to have understood it better than the worst-affected, deeply in the red Kingfisher Airlines.

Looking back at the history of civil aviation in India, one is taken down the memory lane fondly remembering the Tata’s Air India of the yore. That was the time when air travel the world over was synonymous with wealth and luxury. Air India was no exception—going to the extent of sporting a heavily moustached portly and effervescent Maharaja with a jewelled turban as its logo—symbolising luxurious elegance, courteous service coupled with generous hospitality. The turbaned ‘Maharaja’ may have taken a hit in later years after the airline was nationalised, but throughout it remained a full service carrier (FSC). Post the ‘open sky’ policy in the 1990s with private players entering the airline sector, all carriers remained ‘full-service’ till the beginning of the new millennium.

It was in 2003 that Air Deccan was launched, the very first ‘low-cost carrier’ in the Indian skies. Its founder, Captain G.R. Gopinath had the vision of taking air travel to the teeming masses of India. He dreamt of each and every individual in India to experience the joy of air travel at least once in their lifetime. He matched the ‘vision’ with deed by offering low-cost air fares and reaching out to Tier-II/III cities in the country creating air-bridges to bigger metros. The ‘no frills service’ model borrowed from the West proved to be highly successful in India as it genuinely brought air travel from the confines of the high-income group individuals to within affordable reach of the common man. To highlight his vision, Gopinath went to the extent of adopting cartoonist R.K. Laxman’s age-old concept of “common man”—attired in a simple chequered shirt and white loincloth, carrying his worldly belongings in a potli (small bundle) hanging by a staff over his shoulder—as the carrier’s symbol. Befittingly, Air Deccan’s logo consisted of stretched human palms joined together to give the impression of a flying bird, and its motto—‘simplifly’. Gopinath came from an austere background that included initial schooling in a village, a short stint in the Army, a shot at farming and running of a small hotel in Hassan before he took the plunge at a low-cost airline. He ran his ‘budget’ airline with matching austerity, introducing innovative ideas in every possible sphere to cut operating costs to the maximum possible. He was able to sell cheap tickets because of the ‘no frills’ policies. There was no pampering of passengers during flights. His crews did not stay in five-star hotels but when required, night-halted in the airline’s own guest houses located in pre-selected destinations. With his ‘out of the box’ ticketing methods, he was able to regularly fill the seats on his flights with unheard of load-factors and thus ensure profitability of a high order.

The success of Air Deccan literally triggered a revolution in the airline industry in India with a large number of airlines jumping on the low-cost carrier (LCC) bandwagon bringing in their wake a somewhat unsavoury competition and a price war. Air Deccan could have still survived and in all probability emerged victorious in the long-run basically because of its simple ethos and austere work culture; except that it did not have financial resources to weather the ‘competition’ on its own. In the event, it was taken over by its very saviour with deep pockets—the Kingfisher Airlines.

In comparison consider Vijay Mallya, Chairman of the world famous United Breweries (UB) and one of the richest persons globally, launched the Kingfisher Airlines in 2003—the same year Gopinath came up with Air Deccan—but with a totally different vision. True to his own flamboyant and effervescent lifestyle, Mallya did not want anything but the best for his airline too. Named after one of the best selling brands of beer, UB’s Kingfisher, ‘the king of good times’ Mallya wanted Kingfisher passengers—nay, his guests—to ‘fly for good times’. His was to be a ‘full service’ airline and more. He ordered the best of the airplanes, and provided special travel experience to his guests with better and more comfortable seats and superb in-flight service with a personal eye for the detail. When operations began in 2005, his was the first airline in India to provide in-flight entertainment (IFE) system on every seat even on all its domestic flights. In a short span of time after starting operations, Kingfisher Airlines was able to create a unique brand name for itself, grabbing a major chunk of the ‘full service’ segment in India’s airline industry. Kingfisher became one of the only seven airlines worldwide to be awarded five-star rating by Skytrax. More recently, it also bagged the Skytrax award for India’s best airline of the year 2011. The very brand name ‘Kingfisher’ began to be associated with its motto “fly for good times” as the airline not only ensured comfortable travel for its ‘guests’ but also spoiled them with ‘goodies’ and many ‘extras’.

The big question is why would an airline which went the extra mile to create a special niche for itself in the FSC segment even think of getting into the LCC segment? Its coming into fashion could not be the only reason for an astute business tycoon such as Mallya to blindly go for it. One reason could be that Gopinath’s cash-strapped Air Deccan was easy and ready for the plucking. But the greatest attraction for Mallya was perhaps the opportunity it gave him to expand Kingfisher’s business on international routes without waiting for the mandatory five years of in-country operation as stipulated by the government for domestic airlines before granting them permission to operate overseas. In successive moves after the acquisition, Air Deccan was changed to ‘Simlyfly Deccan’ and then to Kingfisher Red. This paved the way for Kingfisher Airlines to start international operations as early as 2008, something that Mallya was itching for. But the acquisition exercise also resulted in him being saddled with a LCC model, against the very grain of character, ethos and work culture of the ‘king of good times’.