Indian Railways is planning to increase its ticket fares by 10 per cent. This is following a financial crunch faced by the ministry of railways.
If approvals are received, the new rates will help Indian Railways earn an additional Rs 5,000 crore. This will also reduce the impact of the cut in the financial assistance provided by the central government.
If fares for the state-owned railway’s air-conditioned compartments are raised any further, there is a chance they will surpass ticket prices for certain domestic airlines.
With falling fuel prices for jets, budget Indian airlines are reducing their fares, and the country is also set to have a new aviation Policy from April 1 (see news February 7).
This could lead to a shift in the travelling trends of the Indian middle-class, who may choose flying over the railways, due to the reduced difference in fares.