New-look Indian Railways fights back against budget airlines

Hitting back against the low-cost airlines to which it has lost considerable business in the last few years, Indian Railways has announced plans for four high-speed railway links, 100 budget hotels on unused railway land, a system-wide cleanliness campaign and major changes in fares and reservation systems.
Presenting the 2007-08 budget to Parliament last Monday, Lalu Prasad Yadav, the Union Minister of Railways, said the once chronically money-losing enterprise was "poised to create history" by generating a cash surplus before dividends of 200 billion rupees, up from 147 billion rupees in 2006-07.
Part of a development strategy first set in motion in 1998, the new plans are designed to boost services for low-income travellers as well as recoup the premium business lost to the low-cost airlines.
In an indirect jab at budget airlines, which are under fire for their contribution to global warming, Mr Yadav said: "Global warming and changing climatic conditions are a worldwide concern today. These energy-efficient and environment friendly [rail] systems would go a long way in alleviating these concerns."
He also announced fare cuts of one rupee per passenger in the second-class non-suburban ordinary passenger and non-superfast mail/express trains. In the air-conditioned coaches, fares are to be cut by between two and six percent, depending on seasonality.
05/03/07 Imtiaz Muqbil/Bangkok Post, Thailand

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Categories: Low Cost General Mar 2007