The Hindu Business Line : Airline industry not worried over Rly fare cut

The Railway Minister, Mr Lalu Prasad’s, proposal to announce an across-the-board reduction of upper class fares could see some air passengers shifting to trains for short distance travels.

Despite the loss of existing air travellers, the domestic airline industry is not having sleepless nights over implementation of the Budget proposals.

“The concessions announced in today’s Railway Budget are a reflection of shifting market trends and consumers’ preference towards air travel.

“The 33 per cent growth recorded last year by the domestic aviation sector has clearly led the Railway Ministry to take a hard look at making rail fares more realistic for the common man,” said the Managing Director, GoAir, Mr Jeh Wadia.

The Time factor

The Managing Director, Paramount Airways, Mr M. Thiagarajan, felt that lower fares would make no difference to air travellers who are on time-sensitive assignments.

The President and Chief Executive Officer, IndiGo Airlines, Mr Bruce Ashby, added that the airline does not consider railways, at any price, to be directly price competitive due to the vast difference in travel time between the two options.

“We do not foresee making any pricing changes as a result of the initiative announced by the railways,” Mr Ashby said.

The Chairman, SpiceJet, Mr Siddhanta Sharma, felt that the implementation of the Budget proposals could see some shift in passengers travelling by train for distances up to six-to-eight hours away.

Airline practices

But there was a feeling that the Indian Railways is adopting practices that are standard among most domestic airlines.

“The decision to promote e-ticket sales and working towards providing tickets bookings on mobile phones are steps that is now being taken by the Railways while this is standard for most domestic airlines,” Mr Sharma pointed out.

More Stories on : Railway Budget | Airlines

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