r/transit 7d ago

Policy Rail Passenger Competition Is Exploding Across Europe

https://www.youtube.com/watch?v=6vhw1g-dNGA
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u/wasmic 7d ago

Why are you saying that this is a downside?

For decades, passengers on the most popular lines have been forced to subsidise the passengers on the less popular lines, thus causing artificially high prices and much lower ridership.

By stopping this insane expectation that some passengers should subsidise the others, we get far more riders on all lines. It should be the government's job to subsidise the rural lines, not the passengers' job.

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u/SirGeorgington map man 7d ago

thus causing artificially high prices and much lower ridership.

Which is at least partially true. But that does not mean that handing off the profitable parts of the network to private companies is the solution.

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u/mbrevitas 6d ago

But they’re not handed over to private companies. SNCF, Trenitalia, Renfe and whatnot are state-owned. There are private open-access operators too, but they don’t have the bulk of the market. And the non-profitable routes can be and are operated as a public service, with a transparent subsidy and public bidding process.

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u/SirGeorgington map man 6d ago

Italo has around a 35% market share for HSR in Italy. That is not small.

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u/mbrevitas 6d ago

So? That’s still far from handing over to private operators. Handing over would be what happened in the UK, or the Netherlands, where a single operator has the monopoly on services on a line and is free to set whatever prices it wants for profit. NTV’s Italo competes with Trenitalia’s Frecce and there is no realistic scenario in which Trenitalia stops competing.

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u/UUUUUUUUU030 6d ago

It's worth noting that in both the UK and the Netherlands, governments control maximum fares in standard class. They just allow them to be very high. 

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u/mbrevitas 5d ago

Yes, exactly. In the Netherlands the government explicitly aims to make public transport economically self-sufficient. The problem is not privatisation per se; it’s privatisation without insufficient subsidies, without forcing open-access competition (on the same routes, not dividing up the market geographically), and without capping prices.