Europe rail competition heating up

Head-to-head competition on Europe’s railway systems seems to be growing significantly after years of existing mostly as a goal. Among the latest entries is a plan by Italy’s Trenitalia to compete with France’s SNCF on the lucrative route between Paris and Lyon.

The Italian operator started service Saturday on a twice-a-day run from Paris to Milan, which overlaps the Paris-Lyon route. Its Frecciarossa (Red Arrow) trains are offering steeply-discounted coach tickets, and a business class that can include facilities for enroute meetings and gourmet meals.

European authorities have long mandated a separation between the companies that operate trains and those that operate the rail system infrastructure to make competition possible, but until recently there were few instances of it, and especially so across countries.

In Italy, Italo and Thello are operating long-distance trains in competition with Trenitalia, and in Germany, the discount bus company Flixbus has been operating as a discount train company as well. In France, SNCF set up its own discount competitor, Ouigo.

But the picture is changing. SNCF has entered Spain with a discount high-speed service that is challenging Spain’s Renfe, which in turn is making plans to enter the French market by running trains through France and on to London via the Channel Tunnel. Germany’s Deutsche Bahn, which considered Germany-to-London service a few years ago may be considering it again.

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