Arthur D. LittleArthur D. Little

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Flying on tracks

Flying on tracks

Network airlines moving into high speed rail operations

Air France-KLM and Veolia, a major European airline and one of the leading private operators of rail based passenger transportation, have announced the start of a new joint business concept: the offering of TGV-style high speed rail (HSR) services under Air France brand and livery from 2010 onwards. Introducing an airline operated railway service might represent an effort of Air France to recover the significant share of travellers European airlines have lost to competing high speed rail services. This Arthur D. Little Transportation Viewpoint looks at the key implications of airlines moving into high speed rail: What is the business logic behind airlines offering their own high speed rail services? What are possible characteristics of the competition between airline rail services and incumbent rail operators? What do airlines need to do in order to set up a feasible business model for HSR operations and how can rail operates answer this challenge?

Released: February 2009

Download File ADL_Flying_on_the_tracks_01.pdf (.PDF, 494 Kb)

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