The Competitive Landscape

By the 2000s, the TGV faced new competition. Germany's ICE, developed later but incorporating lessons from French experience, offered a different model: trains capable of high speed but able to use conventional tracks for more of their journey. Spain's AVE network, built with EU funding, grew rapidly and began competing for international passengers.

Low-cost airlines, practically unknown when the TGV launched, offered cheap flights that challenged rail on longer routes. The 2007 EU directive opening rail networks to competition meant the TGV would eventually face rivals on its own tracks.

SNCF responded with innovation. The TGV Duplex introduced double-decker trains, increasing capacity without lengthening platforms. The AGV (Alstom Grande Vitesse), developed by Alstom after purchasing rights from SNCF, promised even higher speeds with lower energy consumption. Ouigo, SNCF's low-cost TGV service, competed directly with budget airlines.