Why India’s First Bullet Train Project May Not Be A Good News For Airlines


Why India’s First Bullet Train Project May Not Be A Good News For Airlines

The standard-class fare between Ahmedabad and Mumbai on India’s first high-speed train would be around Rs 3,000. There could be further discounts, given the National High Speed Rail Corporation (NHSRC) is quite likely to conduct several “marketing” initiatives on the fares. Strictly speaking, the high-speed rail (HSR) fares wouldn’t be subsidised, unlike the fares on regular Indian Railways trains, but the standard-class fare being envisaged for this journey will surely give airlines a run for their money. Whether the math will work out for India’s showpiece bullet train project eventually is another story, but for now, suffice it to say that for passengers at least, this project could be a boon.

The high-speed train service is expected to become operational by August 2022, with coaches which have about 750 seats. In all 70 return journeys have been planned each day. As the project is envisaged now, the NHSRC is expecting a 4 per cent financial rate of return and an operating ratio of 96 per cent by targeting Rs 3 crore earning each day. Operating ratio is the money spent to earn every Rs 100, and the lower this ratio, the better it is for the high-speed train project. Read More

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