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Air and high speed rail: competition or co-operation?

Air and high speed rail: competition or co-operation?. Examples of competition. Madrid – Sevilla (392 km) Madrid – Barcelona (492 km) Madrid - M álaga (429 km) Frecciarossa (Italy) London – Paris/Brussels (341/329 km) Wuhan – Guangzhou (818 km). The train in Spain.

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Air and high speed rail: competition or co-operation?

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  1. Air and high speed rail: competition or co-operation?

  2. Examples of competition • Madrid – Sevilla (392 km) • Madrid – Barcelona (492 km) • Madrid - Málaga (429 km) • Frecciarossa (Italy) • London – Paris/Brussels (341/329 km) • Wuhan – Guangzhou (818 km)

  3. The train in Spain • Madrid – Sevilla: classic case study • Madrid – Barcelona: 49% air, 51% rail • Madrid – Málaga: 30% air, 70% rail Innovative air-rail and air-bus arrangements are being made in Spain: more later

  4. Italy’s Frecciarossa Torino – Milano – (Venezia) - Firenze – Roma - Napoli

  5. London – Paris/Brussels

  6. To take planes out of the sky • Need to accommodate interlining as well as point-to-point passengers • Interlining passengers need high speed rail stations at airports Manchester London Heathrow Paris Charles de Gaulle London Paris Gare du Nord No way (well, not much!)

  7. China – Guangzhou South Station

  8. Wuhan – Changsha - Guangzhou Now under 3 hours by train – one of the fastest in the world Wuhan Changsha 819 km 555 km Guangzhou

  9. China Southern Airlines Wuhan – Guangzhou sector First reaction: fight Second reaction: cooperate Cut number of flights Integration on Frankfurt and Amsterdam model (described later) • Cut fares (by more than half) • Increase frequencies • Dedicated check-in • Fast-track security • Mobile phone boarding passes Traffic dropped by 5% Watch this space!

  10. So is this a threat? Changsha Airport • 2008 to 2009 • Passenger numbers up 33.5% • 2006 to 2010 • 60 more daily flights • 13 destinations gained • 8 destinations dropped • 3% increase in average sector length

  11. Or is it an opportunity? • What do planes do best? • What can only be done by air? • What’s the problem with airports today? • Can you really make money out of short haul flights?

  12. Fuel cost structure Distance-related fuel costs Average fuel cost/km Cost Fuel for landing & take-off Distance

  13. Air pollution from flights Source: IMPACT 2008 handbook

  14. New entrant (“low cost”) carriers average sector length 1835 km 1144 km 1142 km 1137 km 1045 km 898 km Jet Blue Ryanair Easyjet Air Asia Southwest GOL GOL’s figure distorted by the high volume of São Paulo – Rio de Janeiro

  15. Southwest – flights less than 300 miles (190 km) • 2000 – 29.2% • 2005 – 24.3% • 2010 – 19.3% Source – Boyd-Manager Aviation Research, cited in Air Transport World October 2010

  16. The state of the US aviation industry • 25% of airports in the lower 48 States ONLY have Essential Air Service flights • 50-seat jets are being withdrawn as uneconomic • Flights of less than 100 miles are being withdrawn as uneconomic • Domestic capacity is 9% less than in 2007 • Air traffic may be at top of S-curve

  17. The S-curve • Stages of market growth • Slow, then faster, then saturation

  18. Change in flights by distance Percentage change in the number of scheduled flights domestic by flight distance DoT OIG report “Aviation Industry Performance: a review of the aviation industry 2008-2011” 24 September 2012

  19. London suburbs to Cannes • A colleague left home just before 9:00 and arrived at his hotel at 18:30 • I left home just after 7:00 and arrived just after 18:00 • He flew: I went by train • 640 miles/1030 km

  20. Acela Express 2155, 7:15 Boston - Washington DC • Could substitute for 13 flights on the NEC • Counting flights: • leaving 90* minutes after the train (120* minutes, New York and Philadelphia) • With competitive times only (BOS-NYK, NYK – WAS not BOS-WAS) * ±15 minutes

  21. Cooperation between air and high speed rail Where does it work?

  22. Rivalry means it doesn’t work at Lyon Stunning station! but sadly very few trains! Train service pattern is useless for out-and-back in a day by air from most cities close to the airport

  23. Lyon Airport’s CEO “In Lyon, for many years, we have assumed the TGV is complementary to the airport. The more traffic for TGV, the more benefits for the airport. We think the TGV could be a way to increase the catchment area for Lyon. The most active promoter of high speed rail to Lyon is not SNCF, it is us!” Source: “Airport World” August-September 2012

  24. Co-operation between air and high-speed rail works today! • Amsterdam • China (three cities) • Frankfurt • Madrid • Montreal Trudeau • Newark Liberty International • Paris – Brussels (both ways!) • Zurich • Source: • IARO Report 11.08 – “Case studies in cooperation between air and high speed rail” (with later information added)

  25. Amsterdam Airport Schiphol

  26. Motives? • KLM wanted to keep Antwerpen on the map without flying there • Short runway • Restricted flight capacity • Slot congestion at Schiphol

  27. Recently extended ... • Amsterdam – Brussels (and Any Belgian Station) • Brussels – Paris CDG Airport

  28. China: Shanghai Hongqiao Airport Station Note security arch

  29. China • Shanghai – Wuxi, Suzhou, Ningbo, Hangzhou • All around 150 km (100 miles) • To/from both airports in Shanghai • Railway and airline sell combined tickets • Tianjin – Beijing • New entrant carrier based in Tianjin offering Beijing service • Haikou – Sanyo • Integrated tickets to resort area of Hainan Island

  30. Frankfurt AIRail service Lufthansa check-in at Stuttgart station

  31. Frankfurt AIRail network Köln Siegburg/Bonn Frankfurt Airport Hourly trains Trains every 2 hours Saarbrücken Stuttgart

  32. Frankfurt AIRail service timeline • 1998 Saarbrücken: low-volume trial • 2001 Stuttgart: trains and planes • 2003 Köln: hourly trains • 2007 Withdrawal of all Köln – Frankfurt flights (and checked baggage) • 2007 Addition of a Bonn service (check-in machines only)

  33. Motives? • Fraport wanted more passengers • Within 200 km radius – more passengers than Paris or London • Within 200 km radius - 8 significant airports! • Therefore provide better intermodal connections and more flights • Led to the AIRail partnership

  34. So what? • 200,000 passengers a year use the code-share trains • 5 million transfer passengers a year use the high speed train station • Each small plane takes up the same runway space as a large one ... • ... or sometimes more – wake vortex issues

  35. Madrid: Rail – Air and Bus – Air! • Air Europa • Bus shuttle Atocha AVE station <> Barajas Airport • Around 11 domestic destinations by rail • Aviaca • 13 Spanish domestic destinations (via Madrid or Barcelona) • No shuttle: use the subway! • Alsa • Express bus operator serving the airport

  36. Montreal • VIA Rail Canada + Royal Jordanian Airlines to Ottawa and Toronto • Bus shuttle Trudeau Airport – Dorval Station • Other airlines to join • Delay problem

  37. Differences? • Shuttles between airport and station • work in Montréal and Madrid • would not work in Paris and Frankfurt • Competitive situation – • Many nearby competitor airports in Paris and Frankfurt • Not so for Madrid and Montréal

  38. Newark Liberty International

  39. Newark – code-share • United Airlines no longer fly between Newark and Philadelphia: they code-share with Amtrak • They also code-share to New Haven and Stamford (Connecticut) and Wilmington (Delaware)

  40. Motives? • Expand catchment area – they serve places they’ve never flown to • Slot congestion at Newark – a major problem • Average taxi-out time 30 minutes – 2nd highest in the US

  41. Newark - downsides • No through checked baggage • Seat reservation issues • Platforms 0, 1, 4 and 5! • No Acela Express service • Ticketing and barrier complications

  42. Downtown Brussels – Paris CDG Airport Air France passengers from Brussels at Paris Charles de Gaulle Airport station

  43. Motives? • City of Lille • Isolated without flights • Non-French airlines • No domestic partner airlines in France • Air France • Paris <> Brussels flights: high cost, low revenue

  44. Aix en Provence TGV Angers Avignon Bordeaux Brussels Champagne-Ardennes Le Mans Lille Lorraine Lyon Marseilles Montpellier Nantes Nimes Poitiers Rennes Strasbourg Toulon Tours Valence The Tgvair network

  45. Brussels Airport – downtown Paris • Jet Airways • Cities in India to cities in North America via Brussels • Air rail code-share Brussels – Paris • Brussels Airlines • Many African destinations • One Brussels – Paris flight a day: insufficient capacity

  46. Zürich Platform level Airport station ticket office

  47. Zürich – products • “Fly-rail baggage” to/from 120 stations • “Flugzug” Zürich Airport - Basle • Code-share with Finnair to/from Basle, Berne, Lausanne and Lucerne

  48. Motives? • Swiss efficiency works! • Passenger convenience in a tourist-orientated country • A destination country needs air-rail intermodality • Environment and mountain roads – don’t use cars!

  49. What is the passenger viewpoint?

  50. Train Walk to South Street station 15” Train to Washington 6 hours 40 minutes Subway and walk to hotel 30” Total 7½ hours 6½ hours usable Plane Walk to subway 5” Subway to airport 30” Check in 60” Taxi out 25” Flight 90” Disembark 10” Subway to hotel 50” Total 4½ hours 1 hour usable Boston – Washington DC (638 km)

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