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Aviation slump: Here's how Railways cashed in

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    What many suspected is now clearer than ever: some segments of air passengers have contributed to Rly’s improved performance this year

    In 2003, when Captain Gopinath started Air Deccan as the “common man’s” airline, he would hardly have anticipated what the latter part of the decade had in store for the industry he was pioneering: Multiple factors leading a booming aviation industry to buckle. And simultaneously, the Indian Railways have been quick to grab the opportunity. Statistics now affirm what has long been suspected: A significant rise in railway revenues compared to last year, for the same period that saw airline load factors declining drastically.

    A comparative analysis for April-August 2007 and 2008 show a dip in air passenger traffic and a concurrent rise in railway passenger traffic, most keenly observed in the number of Second AC and Third AC. Airline officials admit the tilt too — barring the corporate traveller who will prefer to not travel at all, a large number of fliers is now back in the trains.

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    Airline industry figures show a dip of four per cent in passengers travelling between April and August this year when compared to last year’s figures. The Indian Railways saw a whopping rise of 21 per cent in its sales of passenger tickets for two and three-tier air-conditioned compartments in the same period.

    According to the figures obtained from the Railways, (see box), an additional 1.67 crore passengers have travelled between April and August 2008 as compared to the same period last year. On revenue, the railways have recorded a growth of 13 per cent in the period.

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    Low cost aviationBy: Philip Thomas | 21-Oct-2008 Reply | Forward Low cost carriers are being squeezed on one side by heavy discounting by full service carriers and on the other side by railways and buses which have low costs due to subsidised diesel. It is time that a holistic view of the situation was taken to make low cost aviation sustainable in the Indian context.
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