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Tuesday, 7 February 2017

Air traffic grows 23%, railways AC travel under 5%

New Delhi: Domestic air traffic is booming but the travel surge seems to have given the railways a miss, especially in the more profitable air-conditioned classes. While air traffic grew 23% to almost 77 million during April-December, the number of passengers travelling in air-conditioned railway coaches, which touched 108 million, grew at less than 5%.
As a proportion of number of passengers travelling in air-conditioned coaches, air traffic was over 71%, which is a record in recent years. Just a year ago, it was a shade over 60%. As a proportion of AC passenger traffic, domestic air traffic used to hover around the 50% mark until 2014-15.

For Indian Railways, passenger traffic is subsidised by freight or cargo with fares, on an average, covering 57% of the cost. Air-conditioned coaches are comparatively less loss-making, although AC three-tier was making profit.
A NITI Aayog analysis showed that a couple of years ago, the railways was spending Rs 1.67 for every rupee earned from its passenger business due to its so called social obligation.
To Read the News in Full 30/01/17 Mahendra Singh & Sidhartha/Times of India
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