Despite Lalu, airlines say ‘trains cannot fly’

Bangalore: Railway minister Lalu Prasad on Tuesday intensified the price war between train and air travel by cutting rail fares on AC First Class by 7%, AC-II by 4% and AC-III by 3%.
The discount widens the gap between fares of budget airlines and AC II-tier to around 30-40%. It also widens the chasm between no-frills airline fares and AC III-tier by close to 40-50%.
However, even after the price slash, AC First travel by train would be costlier than budget airlines by around 10-15%.
But it would be cheaper than economy class fares in any full service airline (Jet Airways, Kingfisher Airlines and Indian Airlines).
So, will low-fare airlines feel the heat of Lalu’s aggressive pricing? Most budget carriers are unperturbed. GoAir managing director Jeh Wadia puts it simply by saying “trains cannot fly.” So “any amount of discount cannot replace the time advantage that can be enjoyed air passengers.”
Some airline executives, however, feel that Lalu’s move could, at the most, marginally impact short-haul sectors.
27/02/08 Praveena Sharma/Daily News & Analysis

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Categories: Indian Aviation- In General Feb 2008, Low Cost General Feb 2008