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From low-cost airlines to low-cost high-speed rail? The French case

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  • Delaplace, Marie
  • Dobruszkes, Frédéric

Abstract

This paper explores OUIGO (pronounced ‘we go’), the low-cost high-speed rail (HSR) service launched by the French state-owned railways in April 2013. In this exploration, we (1) compare OUIGO with the traditional French HSR and the low-cost airlines (LCAs), and (2) analyse fares proposed by OUIGO and its competitors. We thus analyse the new service in terms of production conditions, communication, marketing, booking, network geography, at-terminal and on-board experience and fares. We find that the railway industry’s constraints (including market regulations, technical rigidities and incumbent employment relations) affect the OUIGO business model, which appears as a hybrid between LCAs and traditional French HSR carriers, although fares can be very attractive indeed.

Suggested Citation

  • Delaplace, Marie & Dobruszkes, Frédéric, 2015. "From low-cost airlines to low-cost high-speed rail? The French case," Transport Policy, Elsevier, vol. 38(C), pages 73-85.
    • Handle: RePEc:eee:trapol:v:38:y:2015:i:c:p:73-85
    DOI: 10.1016/j.tranpol.2014.12.006
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    2. Pedro Plasencia-Lozano, 2021. "An Ex Ante Analysis of the Planned Transportation Network in the Region of Extremadura (Spain) by Using Physical Parameters," Sustainability, MDPI, vol. 13(11), pages 1-32, May.
    3. Huang, Yan & Zong, Huiming, 2022. "The intercity railway connections in China: A comparative analysis of high-speed train and conventional train services," Transport Policy, Elsevier, vol. 120(C), pages 89-103.
    4. Asep Yayat Nurhidayat & Hera Widyastuti & Sutikno & Dwi Phalita Upahita, 2023. "Research on Passengers’ Preferences and Impact of High-Speed Rail on Air Transport Demand," Sustainability, MDPI, vol. 15(4), pages 1-26, February.
    5. Tho V. Le & Junyi Zhang & Makoto Chikaraishi & Akimasa Fujiwara, 2018. "Influence of High-Speed Railway System on Inter-city Travel Behavior in Vietnam," Papers 1812.04184, arXiv.org.
    6. (Ato) Xu, Wangtu & Huang, Ying, 2019. "The correlation between HSR construction and economic development – Empirical study of Chinese cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 24-36.
    7. Wen Yang & Quanliang Chen & Jing Yang, 2022. "Factors Affecting Travel Mode Choice between High-Speed Railway and Road Passenger Transport—Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-17, November.
    8. Wang, Yixiao & Sun, Luoyi & Teunter, Ruud H. & Wu, Jianhong & Hua, Guowei, 2020. "Effects of introducing low-cost high-speed rail on air-rail competition: Modelling and numerical analysis for Paris-Marseille," Transport Policy, Elsevier, vol. 99(C), pages 145-162.
    9. Guo, Ying & Cao, Lingyan & Song, Ying & Wang, Yan & Li, Yongkui, 2022. "Understanding the formation of City-HSR network: A case study of Yangtze River Delta, China," Transport Policy, Elsevier, vol. 116(C), pages 315-326.
    10. Mohsen Momenitabar & Zhila Dehdari Ebrahimi & Mohammad Arani, 2020. "A Systematic and Analytical Review of the Socioeconomic and Environmental Impact of the Deployed High-Speed Rail (HSR) Systems on the World," Papers 2003.04452, arXiv.org, revised Mar 2020.
    11. Mohsen Momenitabar & Raj Bridgelall & Zhila Dehdari Ebrahimi & Mohammad Arani, 2021. "Literature Review of Socioeconomic and Environmental Impacts of High-Speed Rail in the World," Sustainability, MDPI, vol. 13(21), pages 1-27, November.
    12. Chiambaretto, Paul & Combe, Emmanuel, 2023. "Business model hybridization but heterogeneous economic performance: Insights from low-cost and legacy carriers in Europe," Transport Policy, Elsevier, vol. 136(C), pages 83-97.
    13. Carlos Augusto Olarte Bacares & Julien Brunel & Damien Sigaud, 2019. "Influence of the evolution of high-speed railway infrastructure on the success of Italian liberalization," Competition and Regulation in Network Industries, , vol. 20(2), pages 113-137, June.

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