Railway may tweak flexi fare system in premium trains

The flexi fare system was introduced on September 9 last year and helped railways earn revenue of Rs 550 crore so far.    

Published: 28th September 2017 09:41 PM  |   Last Updated: 28th September 2017 09:41 PM   |  A+A-

Representational Image. | File Photo

By Express News Service

NEW DELHI: A year after the introduction of flexi fare system in premium trains like Shatabdi and Rajdhani, Railway Minister Piyush Goyal Thursday said that the dynamic pricing is likely to be revised so that passengers don’t have to bear the extra burden.       

The flexi fare system was introduced on September 9 last year and helped railways earn revenue of Rs 550 crore so far.    

“The issue of flexi fare system has been raised by several passengers and we are working on a process to ensure that revenue earnings remain same without putting extra burden to passengers,” Goyal told reporters.    

Railways introduced flexi fare system for premium trains like Rajdhani, Shatabdi and Duronto which led to upto 50 percent increase in fare in these trains. Under the new formula, base fares increases from 10 percent to 50 percent with every 10 percent of berths booked. While railways revenue increased, it lost passengers as several births remained vacant.

The flexi fare system has also led to an increase in train fare in premium trains compared to airlines and several airlines including government-run Air India offering passengers cheaper tickets. Former Railway Minister Suresh Prabhu had also asked the railway board to work out ways to cut the burden of flexi fare on passengers.

Railway has been facing an operational loss of Rs 36000 crore annually owing to subsidized passengers fare. Passenger fare has not been increased in last three years but for the dynamic pricing system last year. 

Earlier, railways was also considering to review 53 concessions it offers to passengers in various categories like divyang, senior citizens, students and defence personnel among others that put a burden of Rs 1600 crore on the public transporter.          

Railway has started printing percentage of subsidy on each ticket offered to passengers and senior citizens have been given an option to voluntary surrendering their subsidy. Male senior citizens above 60 years of age are given 40 percent concession on base fare while women above the age of 58 years can avail 50 percent concession in all classes.

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