The railways are examining the possibility of phasing out AC-I and AC-II tier coaches from long-distance trains as part of their strategy to meet the challenge offered by low-cost airlines.
According to railway officials, the organisation has realised that the difference between its AC-II fares and the fares offered by low-cost airlines like Air Deccan and Spice Jet on major routes such as Delhi-Chennai and Mumbai-Bangalore has become inconsequential enough for the well-heeled railway passengers to fly paying a little extra.
"We realise that even the price cuts announced in the Railway Budget may not be enough to ensure that the regular passengers who travel AC class do not switch over to the low-cost airlines," an official said.
Revenues from the first and second class air-conditioned segments have been dipping in the recent years. The railways' assessment is that they have taken a "severe beating" in AC I and II on routes exceeding 1,500 km wherein the average travel time is more than 24 hours.
This has led planners to realise that the railways' strength today lies in short or overnight journeys. "This is why we have decided to start a large number of trains between state capitals," the official said.
This is also why, for starters, the ministry plans to detach some AC I and II coaches from long-distance trains and attach them to trains that ply shorter distances.
A concept that the planners are now toying with is that of moving towards single-class, wholly air-conditioned trains in which fares would be less than that in the current AC III charges.
The Garib Rath, in a sense, is a reflection of this line of thought that the railways of tomorrow might have to be wholly air-conditioned.
"Till now, we have been cross-subsidising the travel of sleeper class passengers by charging double and triple the sleeper class fares from A/C passengers. But the actual cost of air-conditioning per passenger is only Rs 140 per seat," he said.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
