Friday, December 18, 2009

How are the Indian Railways able to keep the fares steady even when the oil price is rising?

The bus fare and plane fare is seen increasing with oil price. What is the trick?How are the Indian Railways able to keep the fares steady even when the oil price is rising?
This is just by improving the efficiency in all aspects.


Still there is room to improve the fares.How are the Indian Railways able to keep the fares steady even when the oil price is rising?
Railway ministry is smart, they chose to increase the efficiency of railway to increase the quantity and earn more rather than increasing price. And they had that option, because they could increase bogies in the trains, whereas in case of Bus and air, if they increase buses and planes, that would not work.
They have no option. If they put the prices up then the people wouldn't be able to afford the fares because lots of them are extremely poor.





Putting prices up = People couldn't catch the train to work + people would lose their jobs and riot + railways would lose business and the economy would suffer.
More travellers more profit.
robbing peter to pay pal , an appalling , theory.
  • salicylic acid
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