In the list of brands which we have lost in the recent past I have always felt that Air Deccan was on top of the list. To me it showcased the power of pricing and the influence it can have on expanding the overall market in a category. Air Deccan also was a sort of showcase example of power of opening up of the economy and the reflection of the increasing disposable income.
Captain Gopinath , expressed his disappointment at the closing down, but then his suggestion that all domestic should have been Red and international could have been First also goes against Kingfisher's positioning as the 'King of Good Times' . Closing down would also be a factor of the current finacial situation the airline is in. From a branding angle I would have felt that they should have used to Air Deccan name for the low-cost airline and retained the kingfisher as a full service airline. The synergies of combing the two airlines , in terms of ground operations and other logistics could still have made sense.
But then there is another theory where people suggest that acquisition was driven by the urge to start international flights which was restricted to airlines with a minimum years in operations and acquiring Air Deccan gave that status to Kingfisher.