The Italian airline Alitalia does not agree with the authorities’ decision that the high-speed rail service between Rome and Milan is not serious competition to the air carrier.
They are planning to appeal against the decision as Alitalia claims it has lost 2 million passengers and about 50% of the revenues in the last three years due to a competition from the Frecciarossa high-speed train that has achieved a market share of 56% of Rome-Milan route compared to 32% of the aircraft (Fiumicino-Milan Linate Airport) and 12% of the travel by car on the same route.
The competition has forced Alitalia, to invest 30 million euros in the Rome Milan operation in airports, in-flight service and the renewal of the fleet.
The train seat capacity offered on the Rome-Milan route is four times higher than the airlines and is expected to increase further with the new service of NTV Italo train. This is quite surprising considering that flights between Milan and Rome are also offered by other carriers on routes Fiumicino – Malpensa Airport, Ciampino Airport and Orio al Serio (the Bergamo airport 30 miles from Milan), serving the same general areas.
Although their prices have fallen by almost 20%, in three years Alitalia has lost about 40%-50% of passenger revenues.