Pressure is mounting in London and Paris to help Eurostar

Eurostar à cours de cash

Towards Eurostar Bankruptcy Filed ? Railways, a 55% subsidiary of SNCF, is concentrated in the Franco-British territory, but it is urgent. According to our reports, Eurostar, which has lost 95% of its customers since March due to the health crisis, is burning nearly a million euros a day. If the situation does not improve, it will be between 168 and 224 million euros in June.

However, with the advent of the British variant, operating restrictions between the UK and the continent have been tightened: Paris now has to undergo a negative screening test before departure from the UK, following which seven isolations are required. Days in France and the second PCR test, while the UK is also undergoing new isolation measures.

It is enough to increase the pressure on the SNCF. France Inter, This Tuesday, January 19, Its CEO, Jean-Pierre Fernando, has appealed to governments to help the airline as well. “Today we have only one tour, which rotates between London and Paris, forming another London-Brussels-Amsterdam

I and those trains are 10% full, he explained. We are in discussions with the French and English Governments and hope that we will have an organization to assist this organization through these discussions. ”

Aircraft model

Eurostar asks for access For the same secured loans of aircraft, And wants to temporarily reduce fares to run its trains. They represent about 50% of the company’s operating costs, regardless of the number of trains in circulation.

However, the whole difficulty lies in the hybrid position of the company. SNCF controls 55% and SNCP 5%, the Belgian railway company, is owned by Eurostar Guys des Debட்ஸ்ts to Quebec (30%) and British infrastructure fund Hermes (10%). From London Sold its shares in 2015, Within the framework of privatization aimed at reducing deficits. Suddenly, he said, “The British do not want to help us because they think it is an English company and not the French government (which already helps the SNCF). Via train recovery program) Treats us as a company incorporated under English law, with our head office in London, “blowing a person close to the file.

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Among the English, among Eurostar’s largest users (55 to 60% of traffic), the pressure begins to increase. In Letter to Rishi Sunak, Minister of Finance, UK About 30 business executives from London’s first lobby group said Eurostar was needed Quick action to secure your future, Seeks direct assistance from the British Government.

A controversial subject

This matter is also controversial to look at ‘S reaction Financial Times. The British daily has called for it not to be recovered from Eurostar. The answer is “one has to be bigger”, can we read in its columns? January 19. According to the daily, London will already have to pay billions to help with UK train concessions, it will StrangeUK taxpayers “to strengthen the capital held by their French counterparts in Eurostar”. FT considers the company currently operating the cross-channel train service to be “highly convertible”.“.

Current shareholders will appreciate … Should they give up? No doubt, but the situation is tense. By the end of 2020, they had already paid almost 200 million euros into Eurostar. However, Economy Minister Bruno Le Myre made the assurance on Monday evening, January 18th In RTL, What “We will support the rail and airline companies, which we have been doing since the beginning of the crisis.”

The connection with the Talisman is even more appropriate

Talisman will now be included in the talks, as Eurostar’s financial situation was slightly better at the end of 2019 before the Govt crisis. The “greenspeed” connection between the two companies is actually still on track. According to our information, the parties have agreed on their distribution within the capital of the new group.

This The project has already been launched in 2019 Aims to create a European operator first established in the routes provided by Eurostar (Paris, Amsterdam, Brussels and London, etc.) and Talis (Paris, Brussels, Amsterdam, Cologne, etc.), and then other European markets.

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Cory Weinberg

About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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