By Euro Weekly News Media • 01 February 2019 • 11:27
Former head of All-Russian State University of Cinematography 'commits suicide' in Moscow. Image: Baza/Telegram
RENFE’s project to launch a ‘low-cost’ version of the current AVE service is set to be put in motion next year, according to company president Isaias Taboas.
Taboas discussed Renfe’s company strategy for 2019-2021 during a meeting with the press but did not release much information surrounding the project or what the service would entail as they are still working on the fine details.
The president did state that the goal of the low-cost service is to attract clients that use their car as a mode of transport because they consider the train to be too expensive.
The tariffs could be 40 per cent lower than the traditional AVE tickets, which have a price of €52 euros per journey.
Renfe’s main reason for starting the new venture is to continue growing after 2020 when the railway sector opens its doors to other competitors who will be able to offer a similar service to AVE.
Taboas said the company was convinced that with the new ‘low-cost’ service they would continue to create revenue despite the arrival of new competitors to the market.
According to the company’s data, the new service will help increase sales 16 per cent by 2023, raking in €4.6billion and by 30 per cent by 2028 to a revenue of €5.3billion.
Taboas explained that the project will demand an investment of €3 billion in materials and they plan to bring into service 200 new trains in March of this year, valued at €1.7billion.
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