Taking on the challenge from the skies

The Railway Budget 2014-15 could signal the intention of the Indian Railways to take on the challenge of the aviation industry.

Presenting his first Railway Budget, Railway Minister DV Sadananda Gowda outlined proposals to start a number of new trains like a premium train between Jaipur-Madurai, AC Express train between Nagpur-Amritsar and an Express train linking Nagpur and Pune and extend the routes of existing trains.

When asked whether the decision to launch new trains was taken keeping in mind the challenge from the domestic aviation sector, DV Pandey, Member Traffic, Railway Board, said “yes we took it into account.”

Terming it a “great move”, Sharat Dhall, President, Yatra, said that some of the routes on which the Railways is planning to introduce new trains are the ones on which low-cost airlines would look to operate flights. “It is a great move as it offers a traveller different modes of travel at different price points,” he added.

Till now airlines have been trying out new and different routes to woo passengers.

Abhaya Agarwal, Partner, Infrastructure, EY, told Business Line that if the Railways had consciously taken a decision to take on the aviation sector then it was a good sign as competition from the aviation sector is going to become a reality for the Railways.

Jaijit Bhattacharya, Partner, Infrastructure and Government, KPMG, felt that the move will see passengers being provided cheaper and ecologically friendly way of travel.

Perhaps realising that competition was picking up, low-cost airline SpiceJet announced 10 lakh seats, some of which were available at fares that were lower than train fares, its advertisement claimed on the day the Railway Budget was announced.

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