The low-cost airlines had already been feeling the heat of rising fuel costs. To add insult to injury, the Lalu Prasad-led Indian Railways has decided to reduce the AC class fares by as much as 30%, reports Economic Times.
It is learnt that the good news for commuters (and bad for the airliners) would be announced on October 4, 2006,
An all-time low AC train fare of Rs 500 per passenger is likely to be announced, the Mumbai-based newspaper reported.
The Railways will first slash fares up to 30% on certain select sectors and then gradually move to routes which are competing with low-cost airlines.
25/09/06 Myiris.com
