Aviation slump: Here's how Railways cashed in

Mumbai: Statistics now affirm what has long been suspected: A significant rise in railway revenues compared to last year, for the same period that saw airline load factors declining drastically.
A comparative analysis for April-August 2007 and 2008 show a dip in air passenger traffic and a concurrent rise in railway passenger traffic, most keenly observed in the number of Second AC and Third AC. Airline officials admit the tilt too — barring the corporate traveller who will prefer to not travel at all, a large number of fliers is now back in the trains.
Airline industry figures show a dip of four per cent in passengers travelling between April and August this year when compared to last year’s figures. The Indian Railways saw a whopping rise of 21 per cent in its sales of passenger tickets for two and three-tier air-conditioned compartments in the same period.
According to the figures obtained from the Railways, an additional 1.67 crore passengers have travelled between April and August 2008 as compared to the same period last year. On revenue, the railways have recorded a growth of 13 per cent in the period.
Three-tier AC has recorded 35 lakh passengers more compared to last year — the same segment of people targeted by low-cost airlines. This segment also recorded a revenue of Rs 1,283 crore in this period, nearly Rs 300 crore more than the corresponding period last year.
Jeetendra Bhargava, Executive Director of NACIL, said that the drop in airlines’ figures and the subsequent rise in railways’ passenger figure have nothing in common.
20/10/08 Shashank Shekhar/Indian Express

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Categories: Indian Aviation- In General Oct 2008