Title - Flexi fare increased earning for Railways but decreased ticket sales

The Comptroller and Auditor General of India (CAG) has warned Indian Railways about its Flexi fare ticketing system that although it helped the national transporter to register an increase in its passenger earnings but it has also made more and more passengers to opt other trains over premier trains.

During the period of September 9, 2016 to July 31, 2017, Indian Railways earned Rs 552 crore from Rajdhani, Shatabdi and Duronto premier trains but it carried 6.75 lakh fewer passengers during the period compared to corresponding period in 2015 and 2016.

The occupancy in these trains has taken a serious blow and even the most profitable AC third class registered an increasing trend of vacant berths from .66 % in pre-flexy period to 4.46 % in post-flexi period.

On the other hand, occupancy of mail and express trains in the routes of premium trains run was found to be much more than the premium trains. With introduction of flexi fares, premier trains became the direct competitors of Airlines to which CAG found that air fare for 13 sectors was actually cheaper than in the train during the period.

The CAG also conducted a survey among 806 passengers in 16 Shatabdi and 11 Rajdhani trains during April and May 2017. To the question 'Given the travel time, flexi fare without value addition, would you prefer to travel by flight/bus', 497 passengers (62 per cent) replied in affirmative, the CAG found.