Low cost flights and put French TGV cars on Red

Although it's exciting traveling through the countryside to great speeds, the economic situation of France means that fewer people are willing to pay large sums to travel on the network of the Train à Grande Vitesse (TGV).

According to the Quartz, the SNCF, the public company that manages the French rail network, entered the red in 2013, the net losses of 180 million, which compares with the profit registered in 2012, about €376 million. The negative results of the previous year due mainly to a sharp depreciation of € 1.4 billion in the value of the high-speed rail network.

"The TGV is not profitable enough to cover the costs of maintenance and renewal of its fleet," admitted the SNCF. Other factors contributing to the low adhesion and damage of the TGV are the low cost flights and cars, which currently constitute as most economic alternatives to the TGV.

For this year, SNCF expects a "slight improvement" but the TGV passenger volume should continue to fall. To boost revenue, and infrastructure services divisions are planning projects outside of France.

Photo: 8: 00 / Creative Commons

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