Re: [Vic] Age: Train fare pledge dumped

["Dave Proctor" <daproc@spambait.ozemail.com.au>]

"Maurie Daly" <mauried@tpg.com.au> wrote in message
3a54f9c1.4291054@can-news.tpg.com.au">news:3a54f9c1.4291054@can-news.tpg.com.au...
 >
> Not so.
> Monopolistic providers of services be it rail,airlines or even Telcos
> have no interest whatsoever in reducing prices of their services until
> their is direct competition within the same market.
> We didnt see any reduction of airline fares until the introduction of
> Impulse and Virgin ,

Not really a good comparison. There are other factors within the travel
market that affect the consumers decision as to who to travel with, length
and comfort of journey amongst them. The airlines were able to compete on
comfort and journey time grounds, and were thereby able to avoid competing
on price grounds, until Virgin blue and Impulse entered the market.

The rail market is different (in comparison to road travel) as journey times
will always be comparable, so price will always be a ground for competition.

> likewise Telstras prices only fell with the
> introduction of competitor Telcos.

And what other competition was there? Telstra was a true monopoly,
absolutely no competition whatsoever, the exact opposite of a rail market
where there is road and air based competition.

> NXP wont reduce prices unless the Govt forces them to ,or there is
> direct competition for the rail market.

And if a coach company was to start offering parallel services (same times,
on eaach of the long distance markets) you can bet your life they would.

> Trains have been competting with cars for the last 80 years but this
> hasnt brought rail fares down, they just keep on going up.

Maybe it is time to try the other approach. Cut fares by 75%, so that it is
(for example) $10 from ABX to MEL, stick an extra 3 carriages on the train,
and see what happens. At that price, you would get a lot of impulse
passengers, and you never know, you just *might* end up with more cash in
the bank.

Dave