The market welcomed Cpt.G's idea. But as time went by, Air deccan's cust. srvc and overbooking burnt the image. That he could recuperate. What he could not the bottomline.
The airline was not profitable. With my limited understanding of economics and the airlines i saw from last years trip to india, only paramount seemed to be a viable business model. They had "business" class only with full service for a few hundred rupees more. Think about it, the cost of the plane, gas, airport berthing charges, aircraft maintenance crew and a couple more big cost items do not change irrespective of whether you are a low cost or not. to deduct food cost and couple of small items is not going cut cost anyway. But i dont know how well paramount is doing financially BTW
