THE FUQUA SCHOOL OF BUSINESS AT DUKE UNIVERSITY

FUQ-10-2006
MARCH 6, 2006

Date:

3/6/2006

To:

Professor Harvey

From:

Ruchika China, Ruibin Chen, Rishi Gupta and Anuj Sharma

RE:

Fin 456 Final Case

Case Abstract
The Indian economy has been booming in recent years. The aviation industry in India has also been
growing rapidly. However, the market remains largely under-penetrated. The Government of India has
historically heavily regulated the aviation industry. In recent years, there has been a relaxation in the
regulation policy of the Government and this has paved the way for several new airlines to enter the
market.
Air Deccan, Indias first low cost carrier is one of these new entrants and is looking to capitalize on the
vast potential that is inherent in the aviation market. However, to do so it needs to expand its
operations significantly to sustain its market share in light of the growing number of competitors that
are entering the industry. The company is looking to do an IPO to fund its expansion.
Case Discussion Outline
In the case discussion, we focused our analysis on the following areas:
Risk analysis of Air Deccan
Competitive analysis of Indian aviation industry
Identification of finance sources and uses of funds
Pros and Cons of doing an IPO
Valuation
Projections
Sensitivity analysis of the valuation
Conclusion
Other Documentation
Included in the case package are:
Case Write-up
Presentation (PowerPoint format)
Proposed solution

3/6/2006

FIN 456 FINAL CASE: AIR DECCAN CASE

Spreadsheets with case exhibits, company financials, and valuation.

3/6/2006