Railways regain lost share in premium passenger travel
Railways share in the premium class passengers has gone up to 16.9 per cent in 2005-06, said an ASSOCHAM Eco Pulse (AEP) study.
By PTI |
NEW DELHI: Surviving fierce competition from low cost airlines, the Railways has regained lost ground in premium passenger traffic last fiscal.
Railways share in the premium class passengers has gone up to 16.9 per cent in 2005-06, said an ASSOCHAM Eco Pulse (AEP) study.
In three consecutive years, 2002-03, 2003-04 and 2004-05, after the launch of low cost airlines like Air Deccan and SpiceJet, Railways lost top-end passengers by 1.03 per cent, 1.87 per cent and 5.41 per cent, respectively.
The maximum decline was in the year 2004-05, when these airlines became extremely aggressive and even forced the established airline brands like Indian and Jet Airways for competitive price, the study said.
The AEP study analysed that 18 per cent reduction in First Class AC fares by the Railways would further help it increase the premium traffic.
Commenting on the performance of the Railways, Anil Agarwal, ASSOCHAM President said," increased tourist arrivals from abroad and improved movement of traffic within the country; thanks to sustenance of the GDP growth of above six per cent helped both the Railways and the Airlines increase their traffic."
However, the study also warned that because of Railways' past policies of transferring the burden of loss on its high-end passengers, airlines were wooing away traffic.
Airlines has handled 50.98 million passengers in the last fiscal year and posted an impressive growth. However, now, the Indian Railways is trying to make its mark.
With low cost airlines directly targeting the upper class railway passengers, the Railways is now gearing up with various measures like e-ticketing and frequent travelers schemes, passenger profile management system, acceleration of speed, increased frequencies and extension of routes.
Constraints such as cracking airport infrastructure, spiralling aviation turbine fuel price, are going to pose major problems for low cost airlines.
Railways still carrying 1.8 million passengers a day is far ahead from such problems faced by the aviation industry.
Railways share in the premium class passengers has gone up to 16.9 per cent in 2005-06, said an ASSOCHAM Eco Pulse (AEP) study.
In three consecutive years, 2002-03, 2003-04 and 2004-05, after the launch of low cost airlines like Air Deccan and SpiceJet, Railways lost top-end passengers by 1.03 per cent, 1.87 per cent and 5.41 per cent, respectively.
The maximum decline was in the year 2004-05, when these airlines became extremely aggressive and even forced the established airline brands like Indian and Jet Airways for competitive price, the study said.
The AEP study analysed that 18 per cent reduction in First Class AC fares by the Railways would further help it increase the premium traffic.
Commenting on the performance of the Railways, Anil Agarwal, ASSOCHAM President said," increased tourist arrivals from abroad and improved movement of traffic within the country; thanks to sustenance of the GDP growth of above six per cent helped both the Railways and the Airlines increase their traffic."
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However, the study also warned that because of Railways' past policies of transferring the burden of loss on its high-end passengers, airlines were wooing away traffic.
Airlines has handled 50.98 million passengers in the last fiscal year and posted an impressive growth. However, now, the Indian Railways is trying to make its mark.
With low cost airlines directly targeting the upper class railway passengers, the Railways is now gearing up with various measures like e-ticketing and frequent travelers schemes, passenger profile management system, acceleration of speed, increased frequencies and extension of routes.
Constraints such as cracking airport infrastructure, spiralling aviation turbine fuel price, are going to pose major problems for low cost airlines.
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Railways still carrying 1.8 million passengers a day is far ahead from such problems faced by the aviation industry.
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