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Railways to tweak flexi fare in premium trains

The earnings are expected to reach Rs 500 crore in one year.

Published: 04th April 2017 10:18 PM  |   Last Updated: 04th April 2017 10:18 PM   |  A+A-

Indian Railways . | Express File Photo

By Express News Service

NEW DELHI: With railways losing on passengers post flexi fare system introduced in premium trains, it is now working to make some changes in fare system to ensure births don’t remain vacant.

The move comes after Railway Minister Suresh Prabhu asked the railway board to look into changes following review that since the launch of flexi fare in September 2016, it has earned Rs 250 crore while lost 1 lakh passengers on the routes of these premium trains. The earnings are expected to reach Rs 500 crore in one year.

In September 2016, 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.

Railways is now thinking to either increase flat 15 percent fare in all premium trains or keeping 50 percent seats in these trains at normal rate and after that flexi fare system will come into effect.

"We are in process of making changes in the system so that berths don’t go vacant. It will be done in a way that railways don’t lose revenue but passengers also get the benefit," said a railway ministry official.

The flexi fare system has also led to increase in train fare in premium trains compared to airlines and several airlines including government run Air India offering passengers cheaper tickets. 



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