French rail startup Velvet receives approval for high-speed services

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The French transport ministry granted an initial license to Velvet, a rail startup founded by former SNCF executive Rachel Picard, to operate high-speed services between Paris and cities including Bordeaux, Nantes, and Angers starting in 2028. To facilitate these operations, the company secured €1 billion in funding to purchase 12 Avelia Horizon trains from Alstom. This development follows the 2020 liberalization of the French passenger rail market, marking another step in the effort to challenge the dominance of the state-owned operator SNCF.

Consequences

Velvet must now obtain safety certification from France’s rail regulator before it can officially launch its services. The entry of Velvet and other competitors like Le Train, Renfe, and Trenitalia could lead to increased consumer choice and more competitive fare pricing on major rail routes.

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