Lalu a tough fight for budget airlines: Study

New Delhi: An Assocham Eco Pulse (AEP) study has indicated that the Indian Railways bounced back in 2005-06 and regained high-end passenger traffic, which grew by about 17 per cent, as against continuous declines in the previous years.
The story was very different when low-cost airlines had first entered, effecting a crippling impact on railways which went on losing First and AC Class passengers for three consecutive years – 2002-03, 2003-04 and 2004-05. Incidentally, the maximum decline came about when the airlines became extremely aggressive in 2004-05. And it was no help to railways when it was imposing burdens on high-end passengers.
But the AEP study makes it clear that if the passenger traffic in no-frill airlines grew by about 27 per cent in 2005-06, it is not at the cost of the railways which itself has gained an impressive 16.9 per cent growth in terms of premium class passengers.
04/06/06 Mumbai Mirror

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