Railways suffers pricing jet lag | Business Standard News

According to media reports, the blueprint states that 25 per cent of domestic air travel is within 500 km, a segment where the railways used to have monopoly. Though the railways had been claiming that there has been an increase in the First AC, AC-II, III and First Class, which carries more than 145 million passengers every year, the percentage increase has been declining for some time.  On the other hand, the aviation sector is set to cross the annual 100-million passenger mark, soon.   For the railways, there has been an increase in the overall passenger revenue in April and May. During April, passenger revenue zoomed 10 per cent to Rs 4,057.79 crore, compared to Rs 3,684.14 crore during the same period last year. In May, the revenue increased by 4.9 per cent to Rs 4,192.8 crore, against Rs 3,998.48 crore during the same period in 2016.

“The railways cannot be compared with aviation, in terms of revenue and volume. On an annual basis, we suffer a loss of Rs 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 Rs 551 crore,” the official added.

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Railways suffers pricing jet lag | Business Standard News.