A group of European airlines have teamed to oppose what they see as unfair competition from national railways using taxpayers' money to drive carriers out of the short-haul market, writes Herman de Wulf.
The move follows the announcement by French SNCF of a g19 ($25) low-cost TGV train fare between Paris and Marseilles to kill competition from air transport. The group is led by VLM Airlines, which has contacted European Commission competition authorities about "unfair" competition from Eurostar.
The group, which includes BMI and British Airways, may be joined by SN Brussels Airlines and Air France. The airlines claim state-owned loss-making rail companies are engaging in unfair competition by using taxpayers' money. According to EC rules, airlines are not allowed subsidies. The group is calling for state-owned, subsidised railways to be prevented from engaging in "unfair" competition.
Source: Flight International
