Premium
This is an archive article published on February 25, 2006

Consumer delight as Railways takes battle to skies

The good news is that travel by both air and train is going to get cheaper. With Railway Minister Lalu Prasad Yadav making it clear that he...

.

The good news is that travel by both air and train is going to get cheaper. With Railway Minister Lalu Prasad Yadav making it clear that he8217;s going to show the airlines how a price war should be fought, the battle has truly been joined. And guess who benefits? You, the consumer.

Low-cost carriers GoAir and SpiceJet have already said that they would match the new fares offered by the railways. While the airlines are confident that they can hold their own, this is just the beginning of the battle.

The Railways Minister has reduced AC first class fares by 18 per cent, AC second class fares by 10 per cent and has started special fully air-conditioned 8216;Garib Rath8217; where fares would be 25 per cent lower than present AC-III tier fares.

8216;8216;Our aim is to increase the flying base in the country. We will try to consistently offer tickets which are cheaper than rail fares. In the coming few days you will see us reducing our airfares further,8221; GoAir managing director Jeh Wadia said.

A Delhi-Mumbai AC first class train ticket will now cost Rs 3,391 as against the earlier Rs 4,135 and AC second class will now cost Rs 1,999 as against Rs 2,221. On the other hand, a seat on a low-cost air-carrier will cost only Rs 1,379 plus tax in the lowest slab. Fares on low-cost carriers rise by Rs 200-300 when each slab gets filled.

New Delhi-based SpiceJet is also considering matching the railway fares. 8220;We are adopting a wait-and-watch policy. We could consider matching these prices offered by the Indian Railways,8221; SpiceJet chairman Siddhant Sharma said.

However, many players feel that the reduction in railway fare is not going to have any impact on the aviation sector. 8220;The size of the airline market is growing. Even if the railways reduces fares, it will only benefit travellers who will graduate from one class to another. But I don8217;t think that there would be a reverse flow of passengers from airlines to railways,8221; a senior Indian official said.

Story continues below this ad

Industry watchers feel that the aviation industry would be in trouble only if the government touched the AC III tier rates or increases capacity on the AC segment.

8220;The problem with the present railway structure is that there is no adequate capacity in the AC segment. At any given time, the waiting list on any train operating on major routes is around 150-200. In this regard airlines are a better mode for travel.,8221; an analyst said.

Air Deccan8217;s Capt Gopinath also feels that the reduction in ticket rates is not going to have a significant impact on the aviation sector. 8220;Airline ticket prices are dynamic and we always come out with innovative schemes while the tariff on railways is static. Railways cannot compete with us on the time that we save for a traveller,8221; he said.

Zeeshan Shaikh is the Associate Editor who heads The Indian Express' Mumbai reporting team. He is recognized for his highly specialized Expertise in analyzing the complex dynamics of Maharashtra politics and critical minority issues, providing in-depth, nuanced, and Trustworthy reports. Expertise  Senior Editorial Role: As an Associate Editor leading the Mumbai reporting team, Zeeshan Shaikh holds a position of significant Authority and journalistic responsibility at a leading national newspaper. Core Specialization: His reporting focuses intensely on two interconnected, high-impact areas: Maharashtra Politics & Urban Power Structures: Provides deep-dive analyses into political strategies, municipal elections (e.g., BMC polls), the history of alliances (e.g., Shiv Sena's shifting partners), and the changing demographics that influence civic power in Mumbai. Minority Issues and Socio-Political Trends: Excels in coverage of the Muslim community's representation in power, demographic shifts, socio-economic challenges, and the historical context of sensitive political and cultural issues (e.g., the 'Vande Mataram' debate's roots in the BMC). Investigative Depth: His articles frequently delve into the historical roots and contemporary consequences of major events, ranging from the rise of extremist groups in specific villages (e.g., Borivali-Padgha) to the long-term collapse of established political parties (e.g., Congress in Mumbai). Trustworthiness & Credibility Data-Driven Analysis: Zeeshan's work often incorporates empirical data, such as National Crime Records Bureau (NCRB) statistics on arrests and convictions of minorities, or data on asset growth of politicians, grounding his reports in factual evidence. Focus on Hinterland Issues: While based in Mumbai, he maintains a wide lens, covering issues affecting the state's hinterlands, including water crises, infrastructure delays, and the plight of marginalized communities (e.g., manual scavengers). Institutional Affiliation: His senior position at The Indian Express—a publication known for its tradition of rigorous political and investigative journalism—underscores the high level of editorial vetting and Trustworthiness of his reports. He tweets @zeeshansahafi ... Read More

 

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement