The Hindu Business Line : Railways not yet a threat to airlines

Advertisement

New Delhi Feb. 26 Despite attempts to wean away passengers from each other, rail and air travel in the country continue to be as different as chalk and cheese. While the low cost airlines boast of rock-bottom prices, these, in effect, are few and far between. On an average fare basis, airline travel still remains much more expensive than rail travel.

Take GoAir's `Fly free' ticket or Air Deccan's Re 1 fare. Travel industry sources say that these are aberrations since only a very few seats are on offer. Otherwise, the going rate could be much higher.

But, the decision of the Railways to reduce AC-I fares by 6 per cent during the lean season and 3 per cent in peak season, and a similar discount of 4 per cent and 2 per cent in AC-2 tier fares is not giving sleepless nights to the domestic aviation sector.

`An aspiration'

"These minor changes are unlikely to make any alteration in demand patterns. Flying will remain an aspiration for a large section of the travelling population for some time," the Chief of Indian, Mr V. Trivedi, felt. Air Deccan's Captain G.R. Gopinath added that, "The Railways can never match the time-saving advantage that air travel offers. To be globally competitive it is necessary to maximise what can be done in a working day and this opportunity is now available to small businessmen," he added.

Mr Siddhanta Sharma of SpiceJet said that the rail fare changes announced were "cosmetic" and would not see any migration from airlines. Mr Bruce Ashby of IndiGo said, "We are unlikely to adjust our airfares as a result of the AC train fare reductions."

Officials, however, acknowledge that the challenge was to wean away passengers from the Railways. "If we are able to capture even 5-10 per cent of rail traffic, we will have a tough time carrying them," Captain Gopinath said. Currently, the Railways carry in one day what the domestic air traffic is in a year.

More Stories on : Railway Budget | Airlines | Strategy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
HOV Services to buy US BPO unit for Rs 600 cr

Marine products export to EU up 34% in value

PSU oil marketing cos seek changes in dealership norms

`Iron ore freight cut may not lower steel prices'

Lalu's largesse — All passenger fares cut

Railways not yet a threat to airlines

Non-bulk traffic share in revenues on the rise

A beginning to improve stability with diversified goods traffic

Commodity stocks ride on rail tariff cut proposal

Mahindra-Renault-Nissan car facility near Chennai

Crashing prices fuel demand for laptops

Mercator to open centre in Bangalore

Rail travel still cheaper than airlines