Air travellers start crowding train platforms

New Delhi: High airfares might have added to airlines’ woes, especially low-cost carriers, but it has helped railways improve its earnings. While air traffic during April-November declined nearly 4%, number of passengers travelling in air-conditioned bogies of trains increased by 18.33%. Railways’ earnings from the three AC categories during this period grew by 25% to Rs 3,135 crore.
While airfares increased steeply, in some cases even doubling, on account of skyrocketing jet fuel prices in 2008, railway minister Lalu Prasad wooed passengers by lowering AC fares by up to 7% in the Rail Budget, giving a tough time to budget carriers.
Although airlines have started slashing fares with falling jet fuel prices (54% since September, 2008), they are still expected to lose around Rs 8,500 crore in the current financial year.
With mergers and acquisitions in the aviation industry, low-priced tickets launched by budget carriers have disappeared. The minimum airfare available today is for Rs 3,000. A few years back, the same Rs 3,000 airfare was available for Rs 900. Even if budget airlines IndiGo and SpiceJet have re-introduced Rs 99 basic fare, a fuel surcharge of Rs 2,750 and taxes of Rs 225 make the tickets expensive.
06/01/09 Nirbhay Kumar & Subhash Narayan/Economic Times

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Categories: Indian Aviation- In General Jan 2009