In India , 1. we actually need to disperse the demand optimally to all modes of transport.
2. The sort of demand which is unlimited in nature that IR is carrying is financially unsustainable. This demand has to be judiciously distributed to other modes. The supply becomes limited because IR is providing a subsidised travel option.
3. An Engine would cost around 15-20 crores , and only seating LHB coach costs you around 2.5 crore , value of ac coaches and sleeper coaches are again higher. None the less it’s more about...
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revenue . How much IR earns it per seat , while 70% occupancy VB or Shatabdi business is profitable , 2S business is not at 120%. The revenue per km per seat way higher in premium trains. Check the data of top revenue earning trains, you may find Shatabdis , Rajdhanis , VBs topping the charts despite having fewer load , stops and route length.

I was surprise to a low runner like GKP VB , ranking very high in the revenue earner list for NER despite having a very low occupancy.

4. Though I have mentioned that supply is unlimited in particular low fare segment which is financially unsustainable for IR, but every short haul intercity doesn’t run full in India and display huge amount of availability in current .

5. IR is going through a churn and it’s for good , it’s trying to create a world class , state of art travel system for all categories of passengers despite shadows of past and other challenges !

You are only partially correct !
Yes VB is spinning money for IR and yes they are not meant for political halts .

But have you ever studied any transport operation model which based on supply ?
The...
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reservation period of flights are more than and yet they get filled by the end of there reservation period. Many run half empty on many days but earn more during peak days and reap the last minute traveler by charging a premium .

Check out the statements of rail minister and IR , where they have claimed that VB aims to provide additional seats on the intercity routes and most of the train travelers opt trains as the last minute choice …