Railway Flexi fare: Scrapped in some trains, reduced in others

In a relief for passengers railways has scrapped flexifare in 15 premium trains in which the occupancy is less than 50 per cent throughout the year while the scheme will be discontinued in 32 other trains during lean periods when occupancy dips to 5075 per cent It has also reduced flexi fares from 15 to 14 times the base ticket fare in 101 trains Railway Minister Piyush Goyal said on WednesdayThe step comes in the wake of the Comptroller and Auditor General CAG report in July that had flagged the dipping occupancy level since the scheme was introduced in September 2016 and had recommended rationalisation of flexifare Sources in railways also said that while the railways will incur losses of around Rs 103 crore by the changes brought into the scheme it hopes to recover not just the losses but also generate additional revenue by increasing occupancy through the reduced faresSome trains in which the scheme will be discontinued because of low occupancy include KalkaNew Delhi Shatabdi Howrah Puri Rajdhani ChennaiMadurai Duronto The trains in which flexi fares will not be applicable during lean periods include Amritsar Shatabdi Indore Duronto Jaipur Duronto Bilaspur Rajdhani KathgodamAnandvihar Shatabdi Ranchi Rajdhani among othersOn September 9 2016 the railways had introduced flexifare for premier trains 44 Rajdhani 52 Duronto and 46 Shatabdi Express trains Under this the base fare increases by 10 per cent with every 10 per cent of berths sold subject to a prescribed limit There was no change in the existing fare for first AC and economy class As a gift to passengers this festive season Railways has decided to reduce Flexi Fares from 15 to 14 times the base ticket fare and to completely remove Flexi Fares from trains with less than 50 per cent occupancy the minister tweetedWinWin Situation The reduction of Flexi Fares is going to benefit both the passengers that can now avail tickets at cheaper rates as well the Railways that will see a surge in demand and occupancy he said Sources said a 15 per cent jump in occupancy of the 15 trains in which flexifare is being scrapped will compensate for the losses An increase of 30 per cent occupancy in the 32 trains where the scheme is being discontinued during lean periods will lead to recovery of losses From then on any increase in occupancy will lead to additional revenue they saidThe plan is that rationalising fares would lead to increase in occupancy which in turn would ultimately lead to increase in revenue a source said Railways will however continue to apply flexifare in 101 trains in which the average monthly occupancy through the year is more than 75 per cent the source said The railways will also offer graded discount in fares for all classes of current fexifare trains with occupancy less than 60 per cent four days prior to scheduled departure from originating stations For up to 70 per cent occupancy the discount will be 20 per cent on last fare from 7080 per cent occupancy the discount will be 10 per cent on last fare the source saidOn an average sale of 10 per cent of vacant berths will yield around Rs 55 crore for railways the source said The changes will be implemented from advance reservation period on an experimental basis for six months to be further extended after assessing the outcome the source said In July this year the CAG in its report tabled in Parliament highlighted that tickets on the Indian Railways premium trains were much higher as compared to airfaresIt stated that while the introduction of the flexifare system in premium trains Rajdhani Shatabdi and Duronto has led to increase in passenger earnings in this category of trains to Rs 552 crore they have carried 675 lakh fewer travellers during September 9 2016 to July 31 2017 compared to the corresponding period in 20152016 In terms of absolute numbers the premier trains carried 240 crore passengers during postflexi fare period September 9 2016 to July 31 2017 as compared to 247 crore passengers during preflexi fare period September 9 2015 to July 31 2016 said the CAG in its reportCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updatesThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever