The Discount Airline Model Is Coming for Europe’s Railways

By Carol Matlack, Bloomberg Businessweek; August 17, 2018

With ever more passengers opting for low-cost carriers such as Ryanair and EasyJet, Europe’s old-guard airlines have been shaken to their core—forced to slash prices, stick passengers with fees for everything from baggage to beer, and in some cases even declare bankruptcy. Soon, rail operators such as France’s SNCF and Germany’s Deutsche Bahn AG could face a similar shake-up as Europe pushes for competition in passenger train service. Lower fares could attract “millions of new passengers,” says Jacques Gounon, chief executive officer of Getlink SE, the company formerly known as Eurotunnel that manages the English Channel Tunnel. Getlink already runs a car-and-truck shuttle through the tunnel and is considering a discount high-speed service that would challenge Eurostar International Ltd., which now offers the only high-speed passenger service through the tunnel, with fares often topping £400 ($510) for a London-Paris round trip. “We’re convinced the demand is there” for a lower-priced alternative, Gounon says.

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