Contrary to received wisdom whereby Air France has a monopolistic position on the short-haul network, it has to contend with competition from the train. Between Paris, Lyon, Bordeaux, Toulouse, Nantes, Marseille and even Strasbourg, passengers have a choice between either a flight or the TGV.

Although competition in business is to be encouraged, it must however be fair, and the ground rules must be identical for all players. Today, however, the various modes of transport operate according to different principles.

On the one hand, the cost of the TGV’s infrastructure is funded by a nationalized company, the RFF (Réseau Ferré de France), specifically set up to this intent and therefore indirectly paid for by the taxpayer and not the operating company, French National Railways (SNCF), whereas Air France customers finance infrastructures directly.

On the other hand, despite being already heavily taxed, the air transport industry must also pay for security measures while the railways do not since this is the government’s domain. Air France passengers have to pay an additional tax, this time to pay for security measures.

Despite the competition from the TGV and it’s relatively important network, Air France carried 19 million passengers on its domestic flights in 2006 corresponding to a 19% market share compared to the TGVI.