Daily Investment Market News from London
Thursday 21st of August 2008
July 6, 2008

Air France looks to high-speed rail travel


by Kay Murchie

Air France looks to high-speed rail travel

Air France has confirmed it is discussing a possible joint venture with Veolia, a French utility firm, that could see it providing high-speed rail travel.

Air France said it has been looking at launching its own rail links over the last 4 years as it had been unhappy with the service provided when it had purchased rail seats off existing train operators.

The plans would see Veolia, which operates several rail services, run trains from Air France’s hub airport in Paris to other European destinations.

Analysts have said the deal would enable Air France to reduce fuel costs by transferring some services onto the railways.

A spokesperson for Air France said it is reviewing the feasibility and possibility of such a project.

The partnership is likely to remain focused on international travel as, under European Union plans, legislation is set to free up the international rail passenger market in 2010.

Previously, Veolia has run public rail franchises in many countries throughout the world under the now-defunct Connex brand. It now operates continental Europe’s largest private freight service and several rail connections.

Story link: Air France looks to high-speed rail travel



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