The Hindu Business Line : Gap between rail, air fares narrowing

The latest fare reduction announced by the domestic airline industry has further narrowed the gap between rail and air fares, especially between cities that are more than 750 km apart.

Now, a passenger can look forward to travel between Delhi and Chennai for Rs 2,926 on the Delhi-based low-cost airline, IndiGo.

This is only marginally higher than the Rs 2,700 that a passenger pays for travel in second AC on the Rajdhani.

Similarly, Air India, which is a full service airline now offers fares between Delhi-Bangalore at Rs 5,275. In comparison, First class AC travel in Rajdhani costs Rs 4,625, while it costs Rs 2,765 to travel in second AC.

In the last few days, the domestic airline industry has lowered fares passing on the benefits of lower aviation turbine fuel prices.

Currently, a litre of ATF costs less in Delhi and Mumbai than what a customer pays for unbranded diesel. The two metro airports are the busiest in the country. On the short-haul routes, however, the fare difference still remains substantial. Between Bangalore and Chennai, a passenger travelling on the Shatabdi is charged Rs 1,105 for travel in first AC, while the journey in second AC costs Rs 965. In comparison, the cheapest full service airline ticket is priced at Rs 2,325.

The airline industry, however, feels that the time and now money saved in air travel will lead to increase in passengers travelling by air.

Airline officials point out that a passenger can fly from North India to the furthest point in the South in about four hours, while the same journey by train will take more than 48 hours.

Officials indicate that it is still too early to comment on whether the lowering of airfares has seen any rail passengers look at air travel.

Travel agents feel that it is still too early to gauge whether the narrowing if fares between rail and air will impact the travel policy of companies.

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Rail travel still cheaper than airlines

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