(1) IR is very strongly thinking on economics of increasing revenue by indirectly charging more and more from the paxs. This is because with implementation of 7th pay rec., and very low revenue the employee cost had gone all time high of record 70% of total revenue. IR can never grow unless it reduce this astronomically high cost. Organisational restructuring, automation, revamping recruitment policy, efficient deployment of resources like funds, trains, manpower etc is now inevitable.
(2) IR could successfully reduce the no.2 cost I.e. fuel cost but the no.1 cost I.e. employee cost is rising like anything inspite of record high budgetary support.
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Actually IR is slowly going on AirIndia, way and is surviving because it has monopoly in Rly unlike AI which was gobbled up by efficiently managed Private airlines. Flexifares, Suvidha etc are giving opportunity to offer new services and snatch AC3, SL, ACC class paxs from IR, AC1,AC2 are being snatched away by airlines.