Air France Can't Beat 'Em, So it Joins 'Em
Say you're a contestant on The Amazing Race and you need to get from Paris to Lyon, France. You could spend two hours dealing with a flight and all the headaches that go with it, or you could hop a hassle-free train and glide into central Paris nearly as quickly. Which is the better bet?
Unless you're really dumb, you'd take the train. And Air France knows it. After years of losing market share to sexy, speedy trains in the domestic market, the airline is rumored to be considering a joint venture to operate its own high speed trains within France and to destinations in Belgium and the UK.
Air France and a company called Veolia Transport are said to be interested in leasing or purchasing a new generation of train known as the AGV. It can carry 900 passengers at speeds of up to 224 mph, which is a big jump over France's current top-speed rail rider, the 186 mph TVG. Traveling between Paris and Amsterdam on an AGV would take just one and a half hours, which is impressive when you consider that a flight between the two cities takes an hour and 15 minutes, without accounting for time spent at the airport.
To hear Air France tell it, they don't really have a choice but to collaborate with the enemy. "Limiting our activity to aircraft operations and ignoring market trends constitutes a risk," Air France CEO Jean-Cyril Spinetta said at a shareholder meeting in July. "We have reached the logical conclusion that we need to seriously examine the possibility for Air France to operate trains under the Air France brand to several destinations in partnership with a rail service provider."
He's not kidding. The trains are kicking Air France's ass on many domestic routes -- the airline's market share has dropped to 10-percent between Paris and Lyon, and 30-percent Paris to Bordeaux. Things are so bleak that the airline has suspended or discontinued service on several routes, including Paris to Brussels.
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