Carl Mortished: World business briefing
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The lounge was thronged with bleary-eyed and grumpy suits looking in vain for seats. The endless queue for coffee snaked past whimpering children and inconsiderate backpackers. As the PA speakers announced imminent departure, the throng became a mêlée at the exit - an escalator had jammed.
It could be a typical morning at Heathrow, but in my case it was a 7am departure from the Eurostar terminal at St Pancras. Don't get me wrong, the fast train to Paris and Brussels is a brilliant success, for the time being.
Airlines ignore it at their peril and last week Air France threw in the towel and said it was in talks with Veolia, Europe's leading private rail-freight operator, about launching high-speed train services with Air France livery.
The airline industry has been crushed by the price of kerosene and deserted by passengers fed up with delays. After decades of disappointment, false dawns and virtually bankrupt Channel Tunnels, we have finally arrived at the age of the train and the evidence is in the crowd at St Pancras.
Only eight months after opening its doors in November, the new station is choc-a-bloc at peak hours, an exciting but slightly nerve-wracking development for Eurostar and its biggest shareholder, SNCF, the French state railway.
Traffic growth on Eurostar is accelerating like an Alstom locomotive, increasing by 21 per cent in the first quarter, compared with the same period in 2007, and revenues are up by a quarter. Those figures were no flash in the pan, a boost from all the hooplah at last year's opening of St Pancras. Traffic in the second quarter has grown at similar rates, insiders say.
It would not be unfair to say that squeezing the London-Paris journey time by just 20 minutes has boosted Eurostar's income by 25 per cent.
While Eurostar thunders through Kent, the competing service to Paris and Brussels is lost on a never-ending building site west of London. The Terminal 5 fiasco has not helped British Airways's short-haul European business, but by next year (assuming no new operational disaster) it should have ironed out the wrinkles.
Then, BA is left with the awful question of whether short-haul air traffic has any future in Europe. The answer has to be a resounding “no”.
When did you last hear of a service business where the fuel bill represented more than a third of the operating cost, substantially higher than the cost of the staff?
Remember, BA and Air France are not shipping sand and gravel out of the Port of Rotterdam. They are selling a luxurious padded seat and a journey through the stratosphere to pampered executives.
If a third of revenue is burnt in the turbine needed to keep the executive's bottom in mid-air, it doesn't leave much cash for champagne and truffles, nor even the pilot's wages.
To make matters worse, the European Commission has secured the agreement of Parliament and Council for the inclusion of airlines in the European Union's Emissions Trading System. It is another blow because, despite what you have been told, carbon trading is a tax on business and, more importantly, the electrified railways won't pay it.
Air France has watched over the past decade as SNCF's Train à Grande Vitesse (TGV) eroded its domestic business. Air services between Paris and Lyons and between Paris and Brussels have been suspended. The train is dominating traffic to Marseilles and Geneva and the new line east to Strasbourg will quickly extinguish air links.
On the London-Paris route, Eurostar boasted 70 per cent of traffic last year and that must be climbing fast. If the distance travelled is 600 miles or less, a train travelling at 190mph has the edge, city centre to city centre.
Of course, BA knew this and expected the attrition - the airline has always struggled to make money on short-haul routes, battling with budget carriers operating services at lower cost.
If the big European flag carriers can still make their money, it is on long-haul services. What matters to BA, therefore, is its ability to capture wealthy people who want to fly to America, Asia and Africa. And that market is now threatened.
Air France has the opportunity to capture wealthy Britons who live in a wide catchment area east of Heathrow, in Buckinghamshire, Essex, Suffolk and Kent.
By 2010, Europe's high-speed rail network will be open to competing operators. The French airline is keeping mum about its plans with Veolia, but it is a reasonable bet that Air France high-speed rail services to Charles de Gaulle airport will be rolling out of St Pancras within the next five years.
Where does this leave BA? While the British airline fusses over extra runways at Heathrow, its big competitor is planning to run trains all over Europe hoovering up passengers.
You can travel by high-speed train to Charles de Gaulle, to Schiphol in Amsterdam, to Frankfurt and Geneva airports. Where is the high-speed rail link to Heathrow? Is one planned?
The railroading of Air France's domestic business has been achieved by French government diktat and huge public subsidy. The British Government, meanwhile, panders to BA. It promotes new runways, oblivious to Heathrow's increasing isolation and lack of utility.
Forget Heathrow, we need Terminal 2 at St Pancras.
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The Inter-Governmental Safety Commission rules were drawn up some 15 years ago before trains ran through the Channel Tunnel They have not been revised since in the light of some 14 years running trains through the Tunnel and a fire in the early years where the overhead line melted.
Hugh Steavenson, London, UK
It sounds like we need Waterloo International as well after all!But there has to be a fast link from it to High Speed 1 instead of the interminable crawl through Suburban London.That would sort out Central London but this still leaves out the West,Heathrow and the G.W. main line.
Hugh Steavenson, London, UK
Arup has proposed a scheme which answers the Heathrow and west connection problem and it also links up with "Greengauge's"prposals for "High Speed 2.
Hugh Steavenson, London, UK
It might be possible to build a fast rail link from Ashford International to Gatwick and get in on the party. It could even be extended to Heathrow, interchanging with the main routes into London. But I suspect that this would never get support from BAA, which makes a lot of money from car parking.
derek, uxbridge, uk
Too bad we Americans are so completely stuck on being the center of the universe, otherwise we would be able to emulate the things that work.
Roger Picklum, Big Oak Flat, California, U. S. A.
Jim Wills: Cape Town To Buenos Aires? That'll be a heck of a tunnel, stops at South Georgia and Port Stanley?
Andrew Porter, Preston, UK
The point is the French are ahead of the Brits as per usual. Whatever Brown's and Labour's multiple failings let it not be forgotten that it was the Tories who twice vandalised the railway network. Without a certain "low cost" airline trips north would take longer than they did 20 years ago with BR.
Christopher Wright, Newcastle,
SNCF TGV's do not meet Channel Tunnel safety rules laid down by the Inter-Govermental Safety Commission.The world speed record was achieved on the new Paris-Est line, not the Paris-Lyon line.Energy used in a train journey is measured in kW hours (power in kW).Max traction power of Eurostar is 12.2MW
Peter M J Davies, Stafford, UK
Mr Ball - one person's subsidy (railways) is another person's investment (road network). It's odd how no-one ever describes any spending on road transport as 'subsidy' ....
Peter Gutfreund, London, UK
In response to Graham Rounce, the TGV which made the world record run in 2007, Paris to Lyon, consumed about 19,400 kW of electricity.
Peter Melia
Peter Melia, La Colle sur Loup,
Fast trains will soon be running services from London to Moscow and from Cape Town to Buenos Aires. A big plus for the environment. Fast trains are also a more civilized way to travel. Room to move is a big plus on long trips. Fantastic news.
Jim Wills, Brisbane, Australia
High speed trains to Charles de Gaulle, Amsterdam, Frankfurt and Geneva airports: don't leave out Brussels. I took the Eurostar in April to Brussels to connect for a flight to Tel Aviv. I came back the same way. Both trains and flights were on time.
Raphael Gee, London,
If you think seats on a short-haul flight are luxurious and the passengers pampered, you obviously haven't been on one in the last 7 years. I'd love to take the train for business trips to Europe, but I live in Manchester. Many years ago we were promised a Eurostar connection. I'm still waiting.
Mark, Manchester, UK
Still sucks - I looked at the cost of a Eurostar to Paris and then at the cost of Eurostar to Bordeaux via Paris. Yeah - it's cheaper to pay to go to Bordeaux and just get out at Paris. Train travel cost has just gone up thanks to "Simplification" of fares. It won't be useable until it makes sense.
James, Glasgow,
Thank God people are finally waking up to the fact High Speed Rail travel is the future.
As for George Ball's comments people tend to forget the nations road network is subsidised far more than the railways, so perhaps we should all ditch the car for being inefficient? No, thought you wouldn't.
Richard Lenthall, London, UK
This is all nice and fine, IF you live in London. But from there on, you are at the mercy of the UK "railway system", for which the powers that be in this country do not see the need for high-speed connections. Prices are highest, when people need the service most, so the CAR is usually cheaper.
Peter, Carlisle, UK
OK if your journey starts in Central London, I suppose.
Harry Collier
p.s. Where are the long-term and short-term car parks for travellers and their baggage leaving from St Pancras?
Harry Collier, Malmesbury,
I think it worth noting air fares can often be cheaper than rail fares now in the UK. The train operators always talk about their cheapest fare but can you actually find one? Flying BA from London to Manchester and back was cheaper than the train at the time of booking!
Bergman Coffey, Belfast,
The article is incredbly London-centric. The advent of Eurostar has driven airlines out of the Gatwick-Paris market and pushed journey times from the South Coast of Sussex to almost 8 hours door to door. It's less than 200 miles as the crow files which makes it a miserably slow average speed.
Bernard, Chichester,
I stopped flying to Paris after my first taste of Eurostar, way back in the '90s.
The sad thing is that the Labour Party remains locked in the past, with no sign of sensible planning for a UK TGV network.
DJ, Brill, UK
I certainly won't be taking a train from anywhere to 'enjoy' the Air France experience from one of the world's worst aiprorts.
Bill Atkins, Rehoboth Beach, USA
The government now needs to set about building a high speed line to the north and Scotland. It could have a maximum speed of 250km/h (140mph) because of the much shorter distances between cities here. There really should be no need to fly from London to other mainland UK destinations!
Luke, London, UK
Oi! Graham Rounce - that's Nuclear powered French stations not dirty old coal fired British power stations. Britain needs to join the 21st century and gets real.
Winston Smith, Edinburgh, UK
St Pancras T2 is about as barmy as the decision to terminate HS1 there.
With Eurostar's success let's abandon Crossrail/Snailrail and extend HS1 to Reading (Slough stop for Heathrow) and Watford Junction.
Built to a full French spec. HS1 is built to accommodate duplex (double decker) trainsets.
Peter Hooper, Windsor, UK
By the way, how much fuel does Eurostar use (indirectly from power stations)? You make it sound like it's fuel-free.
Graham Rounce, London, UK
Railways are the most subsidised form of transport because they are the most inefficient.
Whatever the future is, railways it aint.
George Ball, Diss,
One day all this will be fields.
John P-T, reigate,