Business Standard

ON THE SLOW TRACK IN TOP FLIGHT

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Railway passenger traffic (in million) | 2016 | 2017 Passengers carried by domestic airlines during Jan-May 2017 were 46.59 million, against 39.60 million during the correspond­ing period of previous year, thereby registerin­g a growth of 17.63% loss of ~35,000 crore on passenger services, owing to subsidy burdens. Operating cost on passenger services is increasing year after year,” said a senior railways official.

In order to boost its revenue in the passenger segment, the national transporte­r had introduced flexi fares on premium trains from September 9, 2016. “The dynamic fare pricing was a success. Additional earnings from flexi fares from September last year to June 30 this year in the premium segment stood at ~551 crore,” the official added.

Responding to a question in the Lok Sabha on whether flexi fares diverted traffic to the aviation sector, the railways ministry responded last week: “In view of the variable fare structure, the fares may or may not be higher than airfares. The system is only in Rajdhani, Duronto and Shatabdi trains. Other mail, express and superfast trains are available under the normal fare structure. It cannot, therefore, be said that this mechanism has diverted traffic.”

The aggressive measures of the aviation ministry like UDAN (Ude Desh ka Aam Naagrik), too, are raising hackles of the railways. The scheme will make air travel cheaper to as low as ~2,500.

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