New Delhi: Does the rail passenger fare hike announced by the railway minister help the beleaguered aviation industry?
Probably not. There was a time while proponents of low-fare airlines said their real competition was upper class rail travel. But that scenario is no longer relevant as the hike in rail fares comes at a time when air fares are already rising because of the withdrawal of flights by Kingfisher Airlines and the resultant capacity correction in the industry.
To be sure, the fare brackets offered by the railways have never really been matched by airlines. So Wednesday's fare hike is unlikely to result in any major shift of rail passengers to airlines.
Currently, only AC First Class rail passengers can well afford to fly economy on the Delhi-Mumbai sector after the rail fare hike, but then one may have to book a flight at least a fortnight in advance.
According to travel portal yatra.com , a First AC passenger on the Delhi-Mumbai Rajdhani had to shell out Rs 3,405 before Wednesday's hike. From 1 April, the fare would be about Rs 450 more, or close to Rs 4,000. This compares quite well with the Rs 4,155 economy fare on a low-cost airline if bookings are done 14-15 days in advance.
15/03/12 Firstpost.com/Moneycontrol.com
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