EUROPE RAIL FIRMS SEEK FINANCIAL AID

The coronavirus pandemic has wreaked havoc on the transport industry in Europe, with flights and trains seeing unprecedented drops in passenger numbers over the past year, according to an exclusive report from Euronews.

But while the inevitable financial hit has been softened for the airline industry, with some €36 billion in government help, the rail industry is asking why it isn’t receiving the same level of support.

Critics of the aid being poured into airlines are worried that without attaching environmental conditions, emissions will return to pre-COVID levels when Europe gets back to normal.

In 2020 rail companies in the EU lost €26 billion, according to figures from the Community of European Railway and Infrastructure Companies (CER), a trade body representing national railway carriers.

The start of 2021 - a year the EU dubbed the European Year of Rail - has not seen a change of fortunes for the rail sector either, as pandemic restrictions continue to decimate passenger numbers.

Eurostar is an example of a rail company in serious financial trouble and yet to receive state support. "Disaster is possible," the company's managing director Jacques Damas said in January. The rail industry has been calling out for more help throughout the pandemic, and seeing the billions in state aid being pumped into the aviation sector is raising eyebrows.

“So far we have state aid for airlines of an amount between €35 to €40 billion, while we have direct support for railways up to €7 billion. It’s approximate measurements but it gives you the size of support one sector is seeing compared to the other,” says Alberto Mazzola, CER’s Executive Director.

“What we are wondering is how we get out of the crisis and then what will be the position of the sector.” He tells Euronews rail companies specialized in international travel, such as Eurostar, are in a “very difficult situation” with revenue down in some cases by 95 percent.

“Domestic traffic has a reduction on average between 40 to 60 percent, which is huge,” he adds.

“I understand the airlines are in a very difficult situation so there is an intervention to support them. We are also suffering in a difficult situation as an operator of transport and mobility, and we would like to get as much attention as airlines or even more.

“If we are thinking about the [EU’s] Green Deal and how we are going to exit from this COVID crisis in terms of transport and mobility, we should find that the railways should be in a better position.”

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