Date:25/02/2006 URL: http://www.thehindubusinessline.com/2006/02/25/stories/2006022503791300.htm

Back `Low-cost airlines won't be hit'

Our Bureau

Bangalore, Feb. 24

Air Deccan's Managing Director, Capt G.R. Gopinath, said that reduction in first class train fares will not hit low cost airlines which are trying to wean away train passengers to their airlines.

"In some ways I am happy that the train fares have been lowered because of the launch of low cost airlines. But we will still continue to see shift of passengers to our airlines," Capt Gopinath told Business Line.

He said passengers will not mind paying 20 per cent to 25 per cent more for air travel because of the time factor and also because they do not have to pay for other charges such as hotel accommodation.

"There is a role which the Railways will play and there is a role which the airline will play as the economy in the country grows," Capt Gopinath said. He said even if 5-10 per cent of train passengers shift to air travel, it will lead to a traffic of 1 million to 2 million more air travellers per day.