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Research Paper on A Study of Indian Railways and Indian Aviation Industry: In Context of Complimenting to each other Submitted By Vipin Dwivedi Research Associate IIM - Lucknow Mentor Mr. Ravij Seth IRAS Financial Advisor & Sr. Professor (Finance & P.P.P) Administrative support by Sri Kishore Mehta CMI/IRITM/Lucknow © Indian Railways Institute of Transport Management, Lucknow (Uttar Pradesh)
Transcript

Research Paper on

A Study of Indian Railways and Indian Aviation

Industry: In Context of Complimenting to each other

Submitted By

Vipin Dwivedi

Research Associate

IIM - Lucknow

Mentor

Mr. Ravij Seth

IRAS

Financial Advisor & Sr. Professor

(Finance & P.P.P)

Administrative support by

Sri Kishore Mehta

CMI/IRITM/Lucknow

© Indian Railways Institute of Transport Management, Lucknow (Uttar Pradesh)

Acknowledgment

I would like to sincerely thank our mentor Mr. Ravij Seth for

giving his guidance throughout the project. His constant

support, encouragement and readiness to answer all the

questions just go on to show his willingness to help us in

achieving my goals. I would also like to thank all the people

who supported in writing research paper, for their valuable

time and support during the project.

AN OVERVIEW OF THE INDIAN RAILWAYS

1. Introduction:

The Indian Railways is a principal service provider in the

transport sector in the country. It has already crossed 150

years of its existence. The first train was introduced in India

on 16th April, 1853 between Boribandar (Mumbai V.T.) and

Thane. The Indian Railways has successfully adapted itself to

the changing needs of travel and transport in the country. It

has also absorbed various advancements in the field of

railway technology and kept itself equipped continually to

meet the growing requirements of passenger and freight

traffic. Evaluation of Railways in last 60 years is mentioned

below:

Parameters Unit FY1951 FY2011

Net Revenues INR billion 0.5 63.5

Passenger

Traffic

Billion 1.3 7.8

Freight Traffic Million metric

tones

73.2 926.4

Stations Nos. 5,976 9,241

Running

Track

Km 59,315 87,114

1.1 Network:

India’s rail network is the largest in asia and the second

largest in the world. The Indian railway operates 12,700

passengers’ trains daily, transporting approx. 2.65 MMT of

freight and 23 million passengers across the country.

1.2 Functions:

The management and formulation of policy are entrusted

with the Railway Board comprising the Chairman, Financial

Commissioner and five other functional Members who look

after the individual departments, namely Electrical,

Mechanical, Engineering, Traffic and Personnel. The Board is

vested with wide managerial and financial powers to

supervise, maintain and control effectively the railway assets

and operations through the various zonal and divisional

organizations.

1.3 Work Force:

The Indian Railways is having a mammoth work force of 15.5

lakhs employees. A disturbing factor has been that the

average emoluments drawn by per employee per year have

increased from Rs. 1,253 in the year 1951 to Rs. 1, 33,967

now. About 55 to 60% of the total expenditure of the Indian

Railways is spent in arranging payments for the working

employees as well as retired employees. There is an urgent

need to reduce the expenditure on man power. This can be

achieved only when the staff strength is reduced and the

staff are motivated enough to improve their productivity and

efficiency.

1.4 Economic Growth:

Due to globalization and opening of Indian economy, at

present, in India 6 to 7% economic growth is being achieved.

This economic growth will put an additional burden on the

Indian Railways to move large volumes of freight and

passengers traffic with lesser staff.

2. Major trends in Indian Railways:

There is a rapid increase in demand for urban mass

transportation systems in the country. Several metro rail

projects are in progress to improve connectivity within cities;

the Delhi Metro has emerged as an internationally acclaimed

venture.

2. Indian Railways (IR) launched mobile ticketing services in

August 2011 to make the ticket issuing process more

efficient. Users can directly buy a ticket from their mobiles

that would be delivered to them through a non-transferable

SMS.

3. IR has attracted increasing investments from overseas

through strategic alliances with various countries over the

last few years. Subsidiaries of foreign companies are being

set up to cater to the huge demand offered by IR.

4. IR is planning to build seven high-speed rail corridors to

provide faster rail connectivity across the country. The trains

will be capable of running at a speed up to 300 kilometres

per hour.

2.1 Traffic

Passenger Traffic went up because of rising income,

urbanization driving passenger traffic growth. Urban

population in India has increased from 17.3 per cent of the

total population in 1951 to 31.2 per cent in 2011; this has led

to increase in traffic between urban and rural areas in the

country. Improvement of urban-rural connectivity by rail has

been another major contributor to passenger growth.

Further, passenger traffic continues to enjoy significant

priority over rail freight. In addition to first right of

movement, passenger rates are highly subsidized by freight

operations utilizing up to 72.3% of network capacity but

contributing only 30% to revenue, while passenger segment

accounts only for 27.7%.

3. Modernisation of Indian Railways

To modernize Indian Railways, the focus is on two

fundamental drivers - Safety and Growth and along a five-

pronged strategy

1. Modernize core assets - They are key revenue

generating assets.

2. Explore new revenue models - To meet the funding

needs for modernization and growth.

3. Review projects - To ensure financial viability, social

benefits, and timely implementation.

4. Focus on enablers - For a holistic and long term

approach to modernisation and execution.

5. Mobilize resources - To capitalize on an opportunity.

3.1 Infrastructure Capacity Creation

The Eleventh Plan attempted a paradigm shift from the

earlier incremental approaches to one of significant

infrastructure capacity addition to handle the quantum

increase in traffic levels and to sustain mobility on the

network by setting ambitious targets as compared to the

performance during the Tenth Plan. The targets in respect of

new lines and electrification have been exceeded.

The expanding requirements of the economy will need much

faster expansion of the freight network along with its ability

to carry larger freight per wagon, improve efficiency of the

Rail system to deliver it faster and expand the network.

There will also be need to improve the share of the Railways

in the overall national freight market. With increasing

incomes, passenger traffic will increase but plan for

expansion must factor in the fact that demand will be for

better quality services for which passengers will be willing to

pay.

INDIAN AVIATION

4.1 Indian Aviation

• 9th largest civil aviation market in the world.

• India is ranked 4th in domestic passenger volumes (45.3

million).

• India’s civil aviation market is set to become the world’s

3rd largest by 2020.

• India has 136 airports, 128 of which are owned by AAI.

• The air transport industry has committed to improve fuel

efficiency by 1.5% per year to 2020

Aviation is the fastest means of transport and has expanded

rapidly with the opening up of domestic skies to the private

carriers in the second half of the 10th plan via public private

partnership investment in the airport infrastructure. The air

transport on long distance routes handles substantial traffic.

This sector also enhances the productivity and efficiency in

the movement of goods and services. It also has an

important role to play on routes which involve difficult

territory.

Aviation sector contributes significantly in development by

generating employment opportunities. As per estimation, the total

manpower requirement (including numbers of pilots, cabin crew,

aircraft engineers and technicians, ground handling staff, cargo

handling staff, administrative and sales staff) of airlines will rise

from 62000 in 2011 to 117000 by 2017.

Aviation to India becomes strategically important in the absence of

widespread waterways network and the delayed development of

infrastructure projects related to other modes of transportation.

Evaluation of Indian aviation in last 12 years is mentioned below:

Parameters Unit FY2000 FY2012

Scheduled Airlines

distance flown

Mn km 199 762

Non-scheduled airlines in

operation

No. 39 136

No. of Aircraft No. 225 1188

Passenger handling

capacity at airports

million 66 233

No. of operational

airports

No. 50 125

Indian Domestic carriers-Market Share July 2012

There are total 136 airports are in India, in which 128 are

managed by AAI and rest of them are by non-AAI. There are

also some achievements of the Indian aviation sector which

they achieved during 2000-2012. The no. of operational

airports are increased from 50 in the year 2000 to 125 in the

year 2012. There is also increase in the aircraft from 225 in

the year 2000 to 1188 in the year 2012. And result of these

two causes the expansion of passenger handling capacity at

airports from 66 million to 233 million in between 2000

2012.

The growth in total passenger traffic has been robust recent

years with a passenger traffic record of 162.6 million in 2012

along with growth rate of 13.4%. During the 2012 domestic

passenger traffic grew 15.7 per cent while international

passenger traffic expanded 7.2 per cent.

Market Share July 2012

There are total 136 airports are in India, in which 128 are

AAI. There are

achievements of the Indian aviation sector which

of operational

airports are increased from 50 in the year 2000 to 125 in the

year 2012. There is also increase in the aircraft from 225 in

year 2012. And result of these

two causes the expansion of passenger handling capacity at

airports from 66 million to 233 million in between 2000-

The growth in total passenger traffic has been robust recent

162.6 million in 2012

During the 2012 domestic

passenger traffic grew 15.7 per cent while international

Major Trends of the Airport Sector

During this growth period, this industry has been witness of

several changes and trends, such as policy initiatives taken by

government to increase private sector participation. At

present movement there are 6 major private sector player

linked with it. There is rise in per capita income, more

disposable income and growing middle in comparison to

previous years, hence more and more people are travelling

by air. There is also hike in user development fees by airport

developers and operators. The another important trend is

the focus on non-aeronautical revenue like increase the

beverages and food retail segment at airports due to absence

of complementary meals in low – cost airlines.

Air Passenger Traffic:

Traffic 2011(in No.) 2012 (in No.) Domestic

Passenger

108 million 106 million

International

Passenger

36.20 million 37.8 million

During year 2012, AI’s passenger load factor was 70.9 % and

yield at Rs. 4.31 per revenue passenger kilometer and it is

expected that company will achieve positive EBITDA

(earnings before income, taxes, depreciation and

Amortization) in the results for the Financial Year 2012-13.

The aim of 11th plan was to provide world class

infrastructure for safe, reliable and affordable air services,

hence increase the passenger growth and cargo traffic and

air connectivity to remote and inaccessible areas. Now as per

12th plan, GOI aims to propel India among the top five civil

aviation markets in the world with the base of the 11th plan.

Rail Business in context of Passenger capacity

enhancement

Passenger Traffic Projection for Twelfth Five year plan:

Indian Railways

Passenger traffic is expected to grow at a rate of 5 to 5.5

percent. The projections for passenger traffic are given in the

table below. The Plan will focus on reducing the cost of

operations, developing attractive service packages and

adoption of competitive pricing to safeguard share of upper

class travel vis-à-vis airlines.

Year Projected

Passenger(suburban)

(Figures in millions)

Ratio Projected

Passenger

Non-suburban

( Figures in

millions)

Ratio

2012-13 4545 51.25 4323 48.75

2013-14 4855 51.07 4651 48.93

2014-15 5186 50.89 5005 49.11

2015-16 5540 50.71 5385 49.29

2016-17 5917 50.53 5793 49.47 Source: data.gov.in

To cater to the projected growth of non-suburban traffic at 8-

9% p.a., it would be necessary to expand supply by increase

in train services and augmentation of seating capacity of

trains. Most of the popular trains would be augmented to 24-

26 coaches. Initially, 26 coach trains would be introduced on

selective routes where additional investment is low.

Passenger Business

Low cost airlines are giving stiff competition to upper class

segments of the passenger business. Other segments,

particularly the short and medium distance passenger

business, are facing intense competition from the vastly

improved road services. The Eleventh Plan strategy is to

consolidate the rail share in passenger business, particularly,

in long distance and medium distance segment by increasing

the commercial speed of passenger trains, and introduction

of fast services between metropolitan cities with speed up to

150 kmph. Development of High Speed Corridors on selected

routes is seen as another key strategy for inter-city transport

and is also an environmental friendly solution.

Indian Railways is a commonly used mode of public

transportation in the country. During 2011-12, it carried

8,224 million passengers as against 7,651 million in 2010-11

thus registering a volume growth of 7.49%. Passenger

kilometres, which is calculated by multiplying the number of

journeys by mean kilometric distance was 1047 billion, up by

6.95% from 979 billion in the previous year. Passenger

earnings also increased by ` 2,453.80 crore (9.51%) in

comparison with 2010-11.The profile of passenger traffic in

2011-12 is outlined below:

Suburban Non-Suburban

2010-11 2011-12 2010-11 2011-12 Passenger

originating(millions) 4061 4377 3590 3847

Passenger

kilometres(millions) 137127 144057 841381 902465

Earnings(Rs in Crore) 1752.29 1925.65 23953.64 26320.78 Average rate per

passenger Km 12.8 13.4 28.5 29.2

Source: indianrailways.gov.in

Passenger Revenue

Passenger revenue has been steadily increasing, though it

formed only about 27% of the total earnings of the Railways

in 2011-12.

Passenger Revenues (Rs. In millions)

Year Suburban Non-

Suburban

Total

1980-81 905.2 7369.5 8274.7

1990-91 3569.8 27877.4 31447.2

2000-01 10911.4 93920.2 104831.6

2010-11 17862.8 239193.6 257056

2011-12 19256 263207 282464

Source: indianrailways.gov.in

AC-I & AC-II Class Earnings and Refund of Passengers

(Apr’2012 to Mar’2013)

Class No. of

ticket

booked

Total no.

of

passenge

r

Total

earning

(fig in

crores)

No. of

ticket

cancelle

d

No. of

pass

cancelle

d

Actual

refund(fi

g in

crores)

Actual

No. of

pass.

travelled

Net

earnin

gs(fig

in

crores)

I -AC 5.74 L 9.40 L 185 2 L 3.5 L 52 5.9L 133

II- AC 8.21 L 153 L 1874 237 L 44.5 L 361 109L 1512

Total 879 L 163 L 2059 239 L 48 L 413 115L 1645

Source: indianrailways.gov.in

• As per above figure shows total no. of cancellation of

total passenger travelled (1058 Lakhs) of all class is

45%.

• 48 Lakhs Passenger has got cancelled their tickets

due to non-availability of berth at a particular time.

• Total loss recorded in the period of 2012-13 is 413

crores in AC I and AC II due to non-availability of

berths or cancellation.

• Approx 48 Lakhs of AC I & AC II passengers are not

getting availability and repositioning business to

other transport mode.

Passenger Capacity Challenge

The main challenge that Indian Railway face today is related

to capacity building. It is essential to build a network of

capacities across the country. At present Indian Railway has a

network of 62,000 km. Indian Railways runs around 12,700

trains everyday, of which 12,000 are passenger trains.

Golden quadrilateral which connects five important metro

cities of India constitutes 60 percent of country’s traffic. The

scale of operations is very huge. People need to be trained in

the usage of new Information Technology systems, so that

these can be seamlessly implemented. Then there are also

the infrastructure related challenges. One major concern

is related to the concept of passenger and freight lines

management. There are separate lines for passenger and

freight in most of the advanced railway systems in the world.

But in India, we have to manage both the traffics in one

single line. There is a need to develop dedicated lines

separately for passengers and freight movement as they both

runs on different speed and excel load.

The Railways are facing severe capacity constraints.

All the country’s high-density rail corridors face severe

capacity constraints. Also, freight transportation costs by rail

are much higher than in most countries as freight tariffs

in India have been kept high to subsidize passenger traffic.

Fare comparison: Indian Railways Vs Indian Airlines

S/No.

Train

Class(A/C) From To IR Fare Flight Fare

1

I

Newdelhi Howrah

3300

4200 II 2400

III 1730

2

I

Newdelhi Mumbai

3540

4273 II 2480

III 1790

3

I

Newdelhi Chennai

4410

5060 II 2970

III 2105

4

I

Mumbai Kolkata

4180

4818 II 2848

III 2025

5

I

Chennai Kolkata

3730

3745 II 2585

III 1860

6

I

Newdelhi Hyderabad

3770

4273 II 2605

III 1870

7

I

Newdelhi Bangalore

4620

4231 II 3200

III 2180

8

I

Mumbai Bangalore

2990

3800 II 2180

III 1505

As per above fare details it seems, there is not much variation of

fares between AC-I Class fares and Domestic air lines for metro

cities. If, we see the flight route of Chennai to Kolkata and

Newdelhi to Bangalore, fare prices are slightly cheaper than AC-I

class fares. Fare structure is based on planned journey of three

months from the date of ticket.

Domestic flights are showing 70-75 percent PLF (Passenger

Load Factor) where 20 millions seats noted vacant in 2011-

12.That much of passenger capacity gap we can trap through

converting High Class Rail passenger into LCC (Low cost

carrier) flights by negotiating bulk prices.

• Low cost carrier flights are showing PLF data against

vacant seat during 2011-12.

• Passenger Traffic is overall 253 Lakhs.

• Average PLF (Passenger Load Factor) noted 75% for all

low cost carrier flight.

• Jet Lite shown the highest PLF (77.9%) among other

domestic players.

• Overall 64.85 Lakhs seats recorded vacant during 2011-

12.

Domestic Airline PLF Analysis -2011-12

Flights

Carried Pass. (in

lakhs) PLF (in %)

No. of pass

travelled(in

Lakhs)

Final Seat(In

Lakhs)

Air India 78 72 56.16 21.84

Spice Jet 92 74.4 68.08 23.92

Go Air 37 77.3 28.49 8.51

Jet Lite 46 77.9 35.42 10.58

253 64.85

Annual Terminal capacity and passenger throughput in

2010-11 at metro Airports

S/N

o.

Major

Airports

Annual

Capacity(millio

n)

Passenger

Traffic

handled(mil

lion)

Capacity

utilization

(%)

1 Mumbai 29.1 29 100

2 Delhi 60 29.94 50

3 Chennai 23 12.05 52

4 Bangalore 11.5 11.59 101

5 Kolkata 24 9.63 40

6 Hyderabad 12 7.60 63

These 6 airports have the capacity to handle 78.6% of the

total Indian passenger traffic handling capacity created in

Indian airports. Out of these, Delhi, Mumbai, Hyderabad and

Bengaluru are JV airports where as Chennai and Kolkata are

AAI airports.The data for all the other major airports has

been given.

Above figures indicates that out of all the metro airports,

Delhi has the highest capacity to handle passengers

amounting to 60 million passengers per annum,followed by

Mumbai,Kolkata,Chennai,Hyderabad and bengaluru in that

order. Cumulatively, all these 6 metro airports have 78.6% of

the total passenger handling capacity in India, the rest being

with non-metro airports.

Above graph indicates that out of all the metro airports, Delhi has

the highest capacity to handle passengers per annum, followed by

Mumbai, Kolkata, Chennai, Hyderabad and Bengaluru in that order.

0102030405060

Annual capacity(in million)

Annual capacity(in

million)

05

1015202530

Passenger Traffic(in million)2010-11

Above graph indicates that out of all the metro airports, Delhi has

the highest capacity to handle passengers per annum, followed by

Mumbai, Kolkata, Chennai, Hyderabad and Bengaluru in that order.

Annual capacity(in million)

Annual capacity(in

The actual passenger handled at metro airports in 2010-11 can be

seen in above chart. The graph shows that the passengers handled

are the highest at Delhi airport followed by rest of the metro

cities.This amounts to 70% of the total passenger handled at Indian

airports. Also amongst Metro Airports, bulk of the passenger

traffic is on the Delhi-Mumbai route i.e approximately 41% of the

total passenger traffic across all Indian airports & 59% of the total

metro airports traffic.

Terminal Capacity Utilization at Metro Airports

Terminal capacity utilization which has been calculated by

dividing the passenger handled in a year by the capacity of

the particular report.

Capacity utilization at Mumbai and bengaluru airport is 100%

and 101% respectively, which means that the existing

capacity is under tremendous stress and the passenger traffic

to be handled is much beyond its capacity.

Terminal capacity utilization for all metro airports stood at

62.5% and for all Indian airports at 70.4% reflecting that

there is still potential for passenger traffic growth at the non-

metro airports for effective capacity utilization.

South Asia Top 10 Airlines Seat Capacity

Ranking Carrier Name Seats

1 Indigo 500580

2 Air India 442828

3 Jet Airways 413303

4 Spice Jet 375833

5 Pakistan Airlines 132880

6 Go Air 129240

7 Jet Lite 114448

8 Srilankan Airlines 95606

9 Air India Express 83538

10 Biman Bangladesh

Airlines

34032

020406080

100120

Capacity Utilisation(%)

Capacity Utilisation

Capacity Utilisation

South Asia Top 10 Reports

Ranking Carrier Name Seats

1 Delhi IGI Airport 919165

2 Mumbai Airport 831365

3 Chennai Airport 352124

4 Bangalore International Airport 332111

5 Dubai International Airport 309142

6 Kolkata Netaji Subhas Chandra Airport 278652

7 Hyderabad RGI Airport 252504

8 Colombo International Airport 187126

9 Kochi Airport 140679

10 Karachi International Airport 133442

Air India Business Overview:

Air India: The time has come to stop procrastinating and act. The final scene is near Air India has delivered a significant improvement in its

operational and financial performance in FY2013, partly due

to improved market dynamics following Kingfisher’s exit, but

also as a result of a serious and committed approach by the

management of Air India, new marketing initiatives and

measures adopted to rationalize its network.

But India's ageing flag carrier is still soaking up over a billion

dollars of India's precious budget each year – with no

prospect of a serious turnaround for the airline in its present

form.

Pricing discipline has been the most significant contributor to

the improved performance. And over the last 12 months Air

India’s domestic market share has increased from

approximately 14% to 20%. The carrier may even report a

small operating profit for the current financial year ending

31-Mar-2013 subject to the impact of the B787 grounding

and market conditions in 4QFY2013. However, the net result

will remain significantly in the red.

Domestic Air Traffic of last seven years ------ Specifically

Delhi & Mumbai

Domestic

Traffic Year

Passengers(Figures

in millions)

Share of Mumbai & Delhi in

traffic(in Percentage)

2006-07 70.62 40.6

2007-08 87.06 39.6

2008-09 77.30 39.3

2009-10 89.39 39.4

2010-11 105.52 38.5

2011-12 121.51 38

2012-13 116.27 37

Indian airports handle 14.1 million passengers in

August 2013------

Passenger traffic up 17.9% y-o-y

Indian airports witnessed a strong growth in

passenger traffic in August 2013. As per the data released by

Airports Authority of India (AAI), air passenger traffic rose by

17.9 per cent from 12 million in August 2012 to 14.1 million

in August 2013. This is the sharpest y-o-y growth recorded in

passenger traffic since July 2011.

In August 2013, domestic passenger traffic (which

accounts for 70-75 per cent of total air passenger traffic) rose

to 10.3 million from 8.7 million in August 2012. This

translates into a smart 19.2 per cent rise. All the six major

airports in India (Mumbai, Delhi, Chennai, Bangalore,

Kolkata and Hyderabad) reported a y-o-y increase in

domestic passenger traffic. Domestic passenger traffic at

Delhi airport, the busiest airport in India, grew by 19.7 per

cent to almost two million. Mumbai airport handled 1.9

million domestic passengers, 27 per cent higher than that in

the year-ago month. Domestic passenger traffic at Chennai,

Bangalore, Kolkata and Hyderabad airports increased in the

range of 12-21 per cent during the month.

Growth Projection for the 12th Five year Plan

Passengers/Freight 2011 2016-17 Average

Annual Rate

of Growth

Passenger(millions)

Domestic 106 209 12%

International 38 60 8%

Source: 12th

Five year Plan

Air-Rail Services in Foreign Countries

Brussels Airlines and Jet Airways join forces with Thalys to link

their networks to the centre of Paris, via Brussels Airport

This partnership marks a new stage in air-rail intermodality

for long-haul trips

.

As from 30 October 2011, passengers departing from Paris

will be able to travel with Thalys to Brussels Airport, the city’s

international flight hub; from there they will be able to

choose from numerous destinations offered by the two

partner airlines, Brussels Airlines and Jet Airways. A new

stage in air-rail intermodality has just been completed. It is

based on a completely new distribution system which makes

air and rail data compatible. It is now possible to book a

combined Thalys + Flight ticket between Paris and Kinshasa

with Brussels Airlines or Paris to Delhi with Jet Airways from

travel agencies or on the airlines’ websites.

Jet airways, India’s premier international airline has entered

into an arrangement with thalys high-speed rail service

between Brussels and Paris, for our first intermodal

codeshare.

Under codeshare, Jet airways will place its marketing code on

the thalys operated direct train service between the train

station at Brussels airport and Paris nord.

LufthansaAirRail: the perfect combination of train and Plane

Travel Connectivity from the centre of cologne, Dusseldorf or

Stuttgart on the ICE (Intercity Express) to Frankfurt Airport,

or in the opposite direction, and enjoy the comprehensive

benefits of Lufthansa Air Rail services. The perfectly timed

coordination of the trains with Lufthansa flights means that

transfer times between train and plane are minimal.

Departing from Dusseldorf central station you can arrive in

Frankfurt in only 72 minutes and form there take off to

anywhere in the world.

China Eastern Air-Rail Service: From Air to Ground

Travel conveniently from Shanghai Hongqiao International

Airport (SHA) to the centre of Hangzhou, Wuxi with CRH, and

enjoy the comprehensive benefits of China Eastern Air-Rail

service! The perfectly timed coordination of China’s high-

speed rail means that transfer times between train and plane

areminimal.

When you start your journey with China Eastern Air-Rail

Service, you check in for flight and railway journey

separately. At the International Arrivals of Hongqiao airport,

China Eastern team will be waiting to greet you and guide

you through the entire procedure to get on train. Please

don’t forget to bring your travelling license such as Passport,

ID card and related Exit-Entrance Permits.

AIR-RAIL Combined Time Table

Route Flight No. Train

No.

Departure

Time

Arrival

Time

Schedule

Shanghai-

Hangzhou

MU6201 G7317 1500 1545 Daily

Shanghai-

Wuxi

MU6101 G7156 1827 1915 Daily

China Eastern Airlines was one of the first airway companies

who have developed Air-Rail service and initiated more

than three routes from Korea and Japan to the Yangtze River

Delta territory of China.

The Yangtze River Delta, also called Chang Jiang Delta,

generally comprises the triangular-shaped territory of Wu-

speaking Shanghai, southern Jiangsu province and northern

Zhejiang province of China. The area lies at the heart of the

region traditionally called Jiangnan (literally, "south of the

Yangtze River"). The Yangtze River drains into the East China

Sea. The urban build-up in the area has given rise what may

be the largest concentration of adjacent metropolitan areas

in the world.

CONCLUSION

Indian Railways has monopoly in medium long distance

travelling passengers in India. But, when we take whole

transport industry, it faces stiff competition.

After travelling customer compares the experience with his

expectations & is either satisfied or dissatisfied .He shares his

experience with friends & family member that affect their

decision to travel with railway in future. His future decision

will be based on his experience in both pre-purchase stage as

well as service encounter stage. Word of mouth marketing

comes out after having experience of the service which is

considered as very effective marketing.

Air travel has become more affordable but airline service is

limited to metro cities in India. It is frequently used for long

distance travelling & in cases of limited time of travel. At

present there are 125 airports, including 11 international

airport.

Multi Modal Connectivity

Whoever travelled by Air, can easily understand the pain of

the reaching airport, whether you are talking about New

Delhi or Bangalore traveller facing the same issue. As the,

major airports in India are mostly located in the outskirts of

the city. This issue adversely affects the comparative

advantage in terms of saving times and also causing

inconvenience to the passengers. The Airports should be

connected by metros, expressways to the cities to get the full

advantage of air transportation by reducing the total travel

time, take example of New Delhi metro airport express.

Efficient mobility of people is one of the key factors for the

progress and prosperity of a society and a nation. Public

Transport services play a major role in reducing the poverty

and keeping deprivation at check in rural areas. Apart from

offering the rural population a viable and convenient way to

market their agricultural produce, It also enables them to

access other sources of income such as engagement in

informal services in nearby urban nodes and formal

employment in manufacturing, food processing, transport

and other industries.

The transport sector of India is facing several challenges

which can be taken as opportunities to overcome from them

and make India leader of this sector in the group of

developing countries. The challenges are,

• Congested and inefficient ports,

• Serve capacity constraints facing by railways,

• Airport infrastructure is strained,

• Hinterland connectivity by different modes of

transport

Way forward

• Expanding construction capacity- construction

industry already overstretched quality , price

affected

• Improving Contract Management – on average

publicly financed road construction contracts

suffering 35% cost overruns.

• Poor quality of designs and site investigations

• Land acquisition

• Tariff / Pricing policy

• Multi modal Connectivity – It’s very important, as it

work as backbone for the all major transportation

modes. It reduces total journey time, reduce

congestions.

• Based on research view, Railways should be more

emphasized on balancing traffic through the multi-

modal connectivity concept, which would be mutual

interest of Indian aviation and Indian Railways.

BIBLIOGRAPHY

Reports

Policy Paper on Civil Aviation: Department of Economic Affairs

Airports Authority of India & Ministry of Civil Aviation Report

Airport Privatization in India

Annual Reports

Airport Authority of India Annual Report

Ministry Civil Aviation(2007-09)

GMR Annual Report (2007-09)

Website Links

Delhi International Airport website.

Government of India Portal

MoCA(Ministry of Civil Aviation)

News Papers

Indian Express

http://www.indianexpress.com/

Economic Times

http://economictimes.indiatimes.com/

Business standard

http://business-standard.com

USEFUL LINKS

www.google.com

www.centreforaviation.com

www.pib.nic.in

www.aai.aero.com

www.apaoindia.com

www.ibef.org/industry/indian-aviation

www.fiaindia.in

www.dgca.nic.in/reports

www.railsafety.co.in

www.chinatourguide.net

www.civilaviation.gov.in

www.indianrailways.gov.in

www.airindia.com


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