Generic railway strategies TOCs
train operator strategies
a research-oriented knowledge base for train operating companies (TOCs)
a research-oriented knowledge base for train operating companies (TOCs)
3.4 Challenger III: Nuovo Trasporto Viaggiatori, Italy
In its company establishment NTV focused on partnering to internalize crucial resources and capabilities for its market entry. The company accessed rolling stock from the OEM Alstom that produces as well as maintains NTV’s fleet. Moreover, the French incumbent SNCF provides NTV with industry knowledge and offers financial support as a major shareholder (SNCF’s major challenger DB was dismissed in the partner selection process by NTV.) (Railway Gazette, 2008b, p. 1; Railway Gazette, 2008g, p. 1). NTV and SNCF agreed that the French incumbent will not compete with NTV in the Italian market (Briginshaw, 2010b, p. 30).
NTV will operate 25 AGV high speed train sets from the French manufacturer Alstom. Each train set will consist of eleven carriages with 460 seats available (Hughes, 2008a, p. 1). The AGV offers a maximum speed of 360 km/h but will operate with a maximum of 330 km/h in Italy. The AGV is Alstom’s first train with distributed power and NTV was chosen as the launch customer (Hughes, 2008b, p. 1; Railway Gazette, 2008c, p. 1). Potential dangers could arise from this fact for NTV. By 2015 NTV is envisioning a market share of 20 percent in the Italian high speed market with ten million passengers per year and estimated revenues of 396 million EUR (Briginshaw, 2009, p. 24).
NTV’s benefit creation will focus on high quality and high customer benefit. The AGVs will be branded as ‘.italo’ trains and contain three classes: Club, Prima and Smart. Luxury (Club) as well as leisure travelers (Smart) are addressed (Railway Gazette, 2011h, p. 1). Moreover, NTV will offer dynamic fares (i.e. yield management) in direct competition with airlines and Trenitalia. By August 2012, NTV started its operations the single route Milano-Naples-Salerno.
Nuovo Trasporto Viaggiatori (NTV) plans to operate a high speed network challenging Italy’s long-distance incumbent Trenitalia. After rescheduling the launch of operations for several times, the company’s operational kick-off took place in spring 2012. Initially on a single route...
In its company establishment NTV focused on partnering to internalize crucial resources and capabilities for its market entry. The company accessed rolling stock from the OEM Alstom that produces as well as maintains NTV’s fleet. Moreover, the French incumbent SNCF provides NTV with industry knowledge and offers financial support as a major shareholder (SNCF’s major challenger DB was dismissed in the partner selection process by NTV.) (Railway Gazette, 2008b, p. 1; Railway Gazette, 2008g, p. 1). NTV and SNCF agreed that the French incumbent will not compete with NTV in the Italian market (Briginshaw, 2010b, p. 30).
NTV will operate 25 AGV high speed train sets from the French manufacturer Alstom. Each train set will consist of eleven carriages with 460 seats available (Hughes, 2008a, p. 1). The AGV offers a maximum speed of 360 km/h but will operate with a maximum of 330 km/h in Italy. The AGV is Alstom’s first train with distributed power and NTV was chosen as the launch customer (Hughes, 2008b, p. 1; Railway Gazette, 2008c, p. 1). Potential dangers could arise from this fact for NTV. By 2015 NTV is envisioning a market share of 20 percent in the Italian high speed market with ten million passengers per year and estimated revenues of 396 million EUR (Briginshaw, 2009, p. 24).
NTV’s benefit creation will focus on high quality and high customer benefit. The AGVs will be branded as ‘.italo’ trains and contain three classes: Club, Prima and Smart. Luxury (Club) as well as leisure travelers (Smart) are addressed (Railway Gazette, 2011h, p. 1). Moreover, NTV will offer dynamic fares (i.e. yield management) in direct competition with airlines and Trenitalia. By August 2012, NTV started its operations the single route Milano-Naples-Salerno.
As a reaction to competition on September 30, 2010 the Italian incumbent signed a contract with Bombardier Transportation and Ansaldo Breda for an order of 50 V300 Zefiro trains. The trains will be due in 2013 with costs of 1.54 billion EUR and 600 seats per train set (Railway Gazette, 2010h, p. 1).
Moreover, Italian infrastructure manager RFI, which is also part of the FS holding as Trenitalia, changed the structure of its infrastructure access charges in March 2011. Rules that were defined in the framework agreement with NTV from 2008 were changed. NTV’s entire business case seemed to be challenged and the NTV board instructed its senior management to pursue all options possible to assure the company’s right and fair competition. Agreements between RFI and NTV were achieved months later (Railway Gazette, 2011e, p. 1).
Moreover, Italian infrastructure manager RFI, which is also part of the FS holding as Trenitalia, changed the structure of its infrastructure access charges in March 2011. Rules that were defined in the framework agreement with NTV from 2008 were changed. NTV’s entire business case seemed to be challenged and the NTV board instructed its senior management to pursue all options possible to assure the company’s right and fair competition. Agreements between RFI and NTV were achieved months later (Railway Gazette, 2011e, p. 1).