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Air France eyes move to railways Posted on: Fri, 4 Jul 2008 13:35:56 +0000 (UTC)

http://news.bbc.co.uk/2/hi/business/7489483.stm

Short-haul Air France passengers could soon be moving onto trains

Air France is holding talks on a joint venture that could lead to it
offering high-speed rail travel.

The airline confirmed reports it was discussing a possible tie-up with
Veolia, a French utility firm that also runs several rail services.

Commentators suggest such a deal would enable the airline to cut fuel
costs by moving some services onto the railways.

Under the plans Veolia would run trains from Air France's hub airport
in Paris to other European destinations.

"We are reviewing the feasibility and possibility of such a project,
but it is too early to discuss its terms," an Air France spokesman
told the Reuters news agency.

Competition plans

The joint venture 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.

Veolia has previously run public rail franchises in several countries
worldwide under the now-defunct Connex brand. It now runs continental
Europe's largest private freight service and several rail connections.

With significant improvements being made to the network of high speed
rail routes in Europe the potential of such services is improving.

As it confirmed reports of the talks, Air France added it had been
looking at launching its own rail links over the past four years as it
had been unhappy with the service provided when it had bought rail
seats off existing train operators.