The status quo in Railway fares will have no impact on airlines as of now. But a section of price sensitive passengers could opt for the railway travel in case the airlines increase fares in future, feel industry experts.
“I don’t think there is any comparison and competition between rail and air travel,” said Rajshiv Kumar, head of revenue management, Jet Airways. “The 30 days apex fares and the special offers we make are not too much expensive.”
While the short distance passengers would prefer affordable train fares, the passengers for medium to long distance would decide their mode of travel as per their urgency and economic status. “There is lot of room for both segments,” said Kumar.
Ankur Bhatia, executive director, Bird Group, an aviation consultancy, feels that airlines which would be bound to increase fares due to frequent fluctuations in jet fuel prices would loose some passengers as the Railway fares have remained stable. “In the long run it will affect the airlines as the low end of air travel and high end rail fare would increase,” Bhatia said.
But for the moment, the airlines have an edge.