Indian Railways is working on a plan to increase its revenue in passenger segment. Interestingly, in the process, it is not going to increase passenger fares....
* IR is already incurring huge losses in passenger segment. With ever-increasing input costs, dangerous convention of not increasing general passenger fare, mindless political opposition to any step to increase second class fare, it is an intelligent move, seemingly originated by Mr. Prabhu, but being openly announced now. * IR should ensure that the most profitable ACIII tickets are most readily available to passengers so that paxs who can afford ACIII tickets go for it and give some profit to IR rather than a loss. * Charging 15-30% premium base fare is OK,... more...
But further upto 50% Flexifare charged over premium trains make these tickets priced much more than its real economic value and these seats are mostly be out of reach of paxs normally travelling in SL class. This is diverting ac rail travellers to ac buses and low-cost airlines.
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