The new AVE 'low cost' Madrid-Barcelona will cost up to 40% less | Economy

The new AVE 'low cost' Madrid-Barcelona will cost up to 40% less | Economy



Renfe will face the entry of private competition with the start-up of the new low cost AVE"A few months before December 2020", with tickets whose price will be up to 40% lower on average than the current ones on the Madrid-Barcelona line, the first corridor where this new service will circulate, according to today's president of Renfe, Isaías Táboas.

The bird low cost and the exit to the exterior, where it will be associated with local companies from other countries to operate AVE and Cercanías lines, are the fundamental axes on which the new Strategic Plan 2019-2023 approved this week by the board of directors of the public company.

The plan foresees that Renfe's revenues will grow 16% in the next five years to 4,600 million euros in 2023, and 30% in a decade, to 5,300 million in 2028. In that budget, it is estimated that the AVE of low cost will generate 15% of total revenues until 2023, and 20% in 2018, while international projects would provide 5% and 10% of revenues, respectively.

The low-cost AVE Madrid-Barcelona project was announced by the previous PP managers, who named it EVA and had planned to open at the beginning of 2019. The Táboas team has put the whole project under review, including its denomination or the journeys that will cover in the future. At the moment, few details of it are known, except that it will start operating before the private competition enters and that its cost will be up to 40% lower than the current ones (the average ticket price of the five AVE corridors is 52 euros). Acciona, together with Ilsa, the company created by the owners of Air Nostrum, has already announced that it will become the first private railway operator to compete with Renfe in the AVE.

"We are going to emphasize the internationalization effort in a proactive way, looking for projects and allies and not only for the AVE, and we will try to save with the low cost the snack that we have from the competition, "Táboas said today.

Integral operator

The Strategic Plan 2019-2023 also includes the passage of Renfe as a simple carrier to become a "Integral operator of mobility" that gives service to the traveler from the moment he leaves his house until he arrives at his destination, with intermodal transport (train, taxi, VTC, bicycle, etc.) and offers of leisure and connection during the trip. The company wants to reach agreements with other shared transport companies and develop a app that will allow the traveler to acquire the entire package in a single management and with a single invoice.

In this line, Renfe will also bet on extending the wifi service that is already provided in some AVE trains to enable it throughout the network, including regional and suburban trains, and the largest stations.

The plan contemplates that 67% of its commuters of commercial trains, those of AVE and Larga Distancia, with which it will have to compete with other operators, have access to wifi in 2023, and 100%, in 2028. Currently, they offer this service on board the AVE trains of those that connect Madrid with Seville, Malaga

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