Airlines wake up to rail threat

Mumbai: The rail budget, normally a non-event for the Indian aviation sector, is re-defining the fare-war for low cost carriers (LCC). While LCCs began by offering attractive fares to woo rail passengers, the new rail budget has met the LCCs head-on by lowering rail fares in a competitive effort to gain back any lost market share.
If the LCCs’ initial responses are anything to go by, the fare-war has only just begun.GoAir managing director Jeh Wadia said, “We will try to consistently offer tickets that are cheaper than rail fares.
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See Also:
Rail Budget: Impact on low-cost airlines
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In the coming days, you will see us reducing fares further.” Air Deccan MD GR Gopinath said, “Airline ticket prices are dynamic and we always come out with innovative sch- emes while the tariff in the railways is static. The price differential between air and rail tickets aren’t much but railways cannot compete with us on the time that we save for a traveller.”
25/02 Financial Express

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