Indian Railways News => Topic started by eabhi200k on Aug 27, 2012 - 21:00:56 PM


Title - Fare fire: Flyers parachute into trains
Posted by : eabhi200k on Aug 27, 2012 - 21:00:56 PM

AHMEDABAD: Call it cost-cutting or shunning of ostentation, but the dip in domestic flyers and increasing rail traffic suggest that with rising airline fares, Amdavadis are switching modes of transport.The impressive growth in airline traffic at Ahmedabad airport seems to have hit an air pocket. The Sardar Vallabhbhai Patel airport, which recorded a rise of more than 40 per cent in domestic air traffic last year, is registering a dip of around 10 per cent this year mainly on the Ahmedabad-Mumbai and Ahmedabad-Delhi routes.In fact, more than 10 domestic flights that were on the summer schedule have been cancelled over the past four months. The airlines have told the Airport Authority of India (AAI) that they have cancelled the flights for operational reasons. Several flights have been cancelled on the Ahmedabad-Mumbai route.

Airline officials said that the rising fuel cost and the increase in user-development fees in Mumbai and Delhi have forced them to enhance airfares.

Last year during summer vacations if one booked a flight ticket a week in advance then one-way economy class fare for Mumbai was between Rs 2,000 and Rs 3,000. Today, the prices are not less than Rs 4,000.

"The airport has been seeing a slight dip in domestic flyers which might be due to the increase in the fares," said Ahmedabad airport director R K Singh. "However, the number of domestic flyers has increased at Ahmedabad airport over the period and the dip might be temporary and limited to a few sectors."

Industry experts feel that the rise in fares have forced many to cut their flying bills.

A financial think tank, Centre for Monitoring Indian Economy (CMIE), has lowered its forecast for air-passenger traffic growth this year from 11 per cent to 7 per cent. CMIE has cited the sharp rise in fares due to a major hike in charges by private operators of Delhi and Mumbai airports as the reason behind lower growth.

City-based travel agents said that they have noted a major dip in corporate bookings.

"We have seen a dip in bookings in sectors where rail and road connectivity are well established," said Paras Grover, a travel agent. "Today, due to high fares for Delhi and Mumbai, individuals and corporate executives prefer an overnight journey on a bus or train."