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

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Presentation on theme: "Air and high speed rail: competition or co-operation?"— Presentation transcript:

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

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

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

4 Italys Frecciarossa Torino – Milano – (Venezia) - Firenze – Roma - Napoli

5 London – Paris/Brussels

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

7 China – Guangzhou South Station

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

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

10 So is this a threat? Changsha Airport F 2008 to 2009 –Passenger numbers up 33.5% F 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? F What do planes do best? F What can only be done by air? F Whats the problem with airports today? F Can you really make money out of short haul flights?

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

13 Air pollution from flights Sector length (km) Air pollution: direct emissions (2000 cents/passenger kilometre) < – – – > Source: IMPACT 2008 handbook

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

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

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

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

18 Change in flights by distance Mileage band 0 to to to to to 2499 Over 2499 June 2012 compared with June 2007 Down 24% Down 16% Down 10% Down 1% Down 4% Up 7% Percentage change in the number of scheduled flights domestic by flight distance DoT OIG report Aviation Industry Performance: a review of the aviation industry September 2012

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

20 Acela Express 2155, 7:15 Boston - Washington DC F Could substitute for 13 flights on the NEC F 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 doesnt 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 Airports 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! 1. Amsterdam 2. China (three cities) 3. Frankfurt 4. Madrid 5. Montreal Trudeau 6. Newark Liberty International 7. Paris – Brussels (both ways!) 8. Zurich Source: IARO Report – Case studies in cooperation between air and high speed rail (with later information added)

25 Amsterdam Airport Schiphol

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

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

28 China: Shanghai Hongqiao Airport Station Note security arch

29 China F Shanghai – Wuxi, Suzhou, Ningbo, Hangzhou –All around 150 km (100 miles) –To/from both airports in Shanghai –Railway and airline sell combined tickets F Tianjin – Beijing –New entrant carrier based in Tianjin offering Beijing service F 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 Stuttgart Trains every 2 hours Hourly trains Saarbrücken

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

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

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

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

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

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

38 Newark Liberty International

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

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

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

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

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

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

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

46 Zürich Airport station ticket office Platform level

47 Zürich – products FFly-rail baggage to/from 120 stations FFlugzug Zürich Airport - Basle F Code-share with Finnair to/from Basle, Berne, Lausanne and Lucerne

48 Motives? F Swiss efficiency works! F Passenger convenience in a tourist- orientated country F A destination country needs air-rail intermodality F Environment and mountain roads – dont use cars!

49 What is the passenger viewpoint?

50 Boston – Washington DC (638 km) Train 1. Walk to South Street station Train to Washington 6 hours 40 minutes 3. Subway and walk to hotel 30 F Total 7½ hours F 6½ hours usable Plane 1. Walk to subway 5 2. Subway to airport Check in Taxi out Flight Disembark Subway to hotel 50 F Total 4½ hours F 1 hour usable

51 Distractions! New London, Connecticut

52 How big is an aircraft window? Typical aircraft window Sheet of A4 paper (210 x 297 mm) Only on some of the really big modern airliners do windows get much bigger – on the B-777 they are 388 mm x 273 mm

53 Conclusions F Rail and air can co-operate - or compete F Efficiency = do what each does best F High speed airport station almost essential F Is travel time a cost or a benefit? F Passengers will decide

54 Andrew Sharp Policy Adviser International Air Rail Organisation

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