The liberalization of the Spanish excessive pace turned a actuality simply two years in the past, when the Ouigo trains started to flow into between Barcelona and Madrid.
The liberalization of the Spanish excessive pace turned a actuality simply two years in the past, when the Ouigo trains started to flow into between Barcelona and Madrid. The long-discussed revolution within the rail sector has ended up being a actuality, with a rise in provide and a drop in costs. Hélène Valenzuela, basic director of the French firm in Spain, evaluations the state of affairs of the corporate and the sector.
Have the expectations with which you arrived two years in the past been met?
No, no one anticipated the covid, the struggle in Ukraine, or inflation... However optimistic issues have additionally occurred: we created a market, new profiles have arrived on the practice and now we have a excessive occupancy charge.
They have been the primary to dispute the passenger with Renfe. After a 12 months Iryo entered and put much more trains between Barcelona and Madrid. Have they suffered from elevated competitors?
The citizen has seen it as a result of now they've the opportunity of selecting 4 merchandise [Renfe's AVE, its low-cost option Avlo, Ouigo and Iryo]. Having the ability to select may be very optimistic. Collectively now we have to make sure that the winners are the practice and the citizen. We aren't combating to have a set cake, we're combating to develop the practice market and to determine itself because the cleanest mode of transport that exists.
For now, the numbers of high-speed vacationers have reached ranges by no means seen earlier than.
The newest report from the CNMC explains that the strains the place there was not but liberalization, akin to Madrid-Seville, are nonetheless 20% beneath the pre-pandemic degree when it comes to passenger numbers. The place now we have entered, alternatively, there was huge progress. Between Madrid and Barcelona, within the third quarter of 2022 there have been 43% extra vacationers than in the identical interval of 2019. There may be an induction in direction of the practice, that is the excellent news!
The place do these vacationers come from?
There's a modal shift and outright induction. Individuals who took the automobile or the aircraft now resolve to go by practice. That is new, we're creating practice tradition. There are additionally individuals who didn't journey and now do. Roughly two thirds of our vacationers do it for leisure and 15% journey as a household with the fastened charge of 5 euros for kids below 14 years of age.
Ouigo's nice asset in comparison with its opponents is the value. Are you able to proceed promoting tickets at 9 euros in the long run or is it unsustainable?
Low costs are in our DNA. Since Ouigo's entry there was a drop in costs and all the sector has adopted go well with. Trainline information reveals they're down 40% total. Our low-cost mannequin solely works with few frequencies and lots of seats to realize economies of scale, which is why now we have double-decker trains that run in double composition, with 1,018 seats in the identical groove. We've to achieve a excessive occupancy charge for it to work.
Elevating the value of a ticket from 25 to 35 euros, to present an instance that's nonetheless enticing, would it not be very noticeable in employment?
Very a lot, the division that manages costs dynamically is aware of that then the trains usually are not full. If he had wished to move on the rise within the worth of vitality, the value of the Madrid-Barcelona ticket needed to rise by greater than ten euros. We did not, we stored the costs low as a result of elevating the value proper now would decelerate liberalization. Market sensitivity to cost may be very excessive in these instances of financial uncertainty.
However the worth of aircraft tickets has additionally risen...
We've an issue of competitiveness with the highway, because the highways are free. It's one thing that occurs in few international locations. Some younger folks do numbers and if there are 5 it's cheaper for them by automobile. Individuals are searching for worth for cash.
When do you count on the corporate to make a revenue?
I hope that 2024 would be the 12 months, not less than, of optimistic outcomes and reaching equilibrium, though the circumstances usually are not but met. It is determined by how the value of vitality evolves. And if the canons proceed like this, now we have it very difficult.
Adif has frozen them this 12 months. Do you contemplate it inadequate?
It isn't sufficient when vitality multiplied by 5 in 2022. We anticipated a drop in charges as there was in Italy. There they have been lowered by 30% and that allowed operators to decrease costs in an economically sustainable method over time. It's a virtuous circle: you appeal to extra folks, the operators may be maintained and Adif would gather extra. We should discover that steadiness as a result of right here Adif's assortment by charges goes far past what the market can bear. All of the operators complain and in the long run it's unsustainable.
One in 5 trains in every path between Barcelona and Madrid cease in Tarragona. Do you propose to increase the service?
The framework settlement establishes three stops in Zaragoza, however not in Tarragona and the remaining should be requested yearly. The primary time it was not very difficult and we added a second cease in Tarragona, however this 12 months technically it has not been doable as a result of lack of capability within the mesh as there are extra trains. Tarragona is a market with loads of potential however we aren't going to have the ability to cease any extra within the quick time period, though yearly we'll elevate it once more.
And Lleida?
No. I see it as very difficult, actually, as a result of it prices loads of time having to go away the high-speed line.
Do you propose to increase the journey to Girona and Figueres both?
We don't contemplate it, our rolling inventory is just not permitted to get there.
The SNCF, its dad or mum firm, has operated the Barcelona-Paris alone since final December. Will they promote it collectively with Ouigo from Madrid?
No, we market a home product from level to level. We don't give correspondence, we don't make sure the reference to different trains and the consumer is notified in a really clear method. If you wish to go from Madrid to Paris by high-speed practice, that is fantastic and I am in favor of it, after all, however we did not develop this connection as a result of it takes a very long time to journey.
European governments such because the French are dedicated to prohibiting flights on routes which have a strong rail different. Do you share it?
I do not know if you must legislate, what you must do is drive the practice and make it enticing. I'm extra inclined to respect the liberty of selection and that the citizen can select. Relatively than prohibiting, what we'd like is a coverage that's in step with the goals of decarbonizing the financial system.
The corporate's subsequent steps are to increase the service to Andalusia, the place the competitors has already entered. Do you have got an arrival date?
We're conditioning six trains and in June we'll start exams on the road. From there the executive half begins, which is able to take us till the second quarter of subsequent 12 months. I hope that the CNMC reveals how the earlier than and after is marked by Ouigo. Whenever you arrive in Andalusia, the Andalusians will discover. Then again, when the others arrive, an equilibrium is created and costs proceed to be excessive.
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