Title - AC travel in railways grows a mere 5% against a mere 23%

On one hand when growth in Air traffic is surpassing the expectations, Indian Railways is unable to find more travellers for its AC coaches. Between April and December passengers travelling in Airlines grew almost 23% while for railways the growth was less than 5%. With 108 million passengers opting railway’s AC coaches to travel; it makes up almost the same numbers with a mere increase.

For Indian railways, AC coaches are less loss making prospect and AC 3 tier is infact makes profit and is the most popular among the masses.

According to a NITI ayog analysis, railway was spending Rs 1.67 for every rupee earned from its passenger business. It says that railway is in compulsion to do so due to its social obligation.

On the other hand railway experimented by implementation of dynamic pricing which made prices that close to airline tickets that passengers would prefer air-travel rather than train.