Certares Backs Trenitalia France With €300M Rail Bet

Certares is deploying a €300 million equity check to buy a stake in Trenitalia France alongside Italy’s state-owned Ferrovie dello Stato, aiming to capture cross-border European travel and launch a Paris–London service by 2029. The private equity firm is betting that secured rolling stock orders from Hitachi will beat rivals through the Channel Tunnel. [1]

Why is Certares investing €300 million in European trains?

Certares sees high-speed rail as an asset class capable of outcompeting short-haul aviation between high-density city pairs while generating returns that satisfy ESG mandates, Skift reported. [1] Founder Greg O’Hara stated that traveling between Milan and Rome on a three-hour train often requires less elapsed portal-to-portal journey time than a one-hour flight, with consumers choosing whichever transport option is easier. [1]

Rail also aligns with shifting European regulations. France enacted a law banning domestic short flights on routes where a direct train journey takes less than two and a half hours, O'Hara noted in an interview with Skift. [1] The regulatory posture makes electric rail a rare European asset for institutional investors seeking ESG compliance alongside commercial profits. [1] According to Skift, the €300 million check comes from Certares's current fund alongside co-investment capital raised from European family offices and institutional investors. [1]

What exact corporate assets did Certares buy?

Certares agreed in December to acquire a shareholding strictly in Trenitalia France, rather than its Italian parent organization Ferrovie dello Stato. [1] Ferrovie dello Stato remains a state-owned enterprise that retains ownership of tracks, railway stations, and the wider operating business across Italy. [1] Certares enters solely as an equity partner inside the French subsidiary alongside the Italian state railway. [1]

The investment is currently progressing through regulatory approvals, which O’Hara expects to clear before a multi-month closing process, as reported by Skift. [1] To fill seats, Certares intends to funnel passenger traffic to the rail carrier through its own travel agency networks, including French brands Marietton and Voyageurs du Monde, as well as global corporate management firm AmexGBT. [1]

How does the Paris-London expansion challenge cross-Channel rivals?

The cross-Channel expansion centers on train equipment availability, where Trenitalia France holds a confirmed hardware advantage over rivals like Virgin, Skift reported. [1] Trenitalia France ordered 19 high-speed trainsets from manufacturer Hitachi in August, earmarking ten of those units directly for a projected Paris–London service scheduled to commence by 2029. [1]

Access to the Channel Tunnel requires approvals from British authorities, French authorities, and the tunnel operator itself. [1] While Virgin won the rights to a train maintenance depot in London and secured a conditional letter from the British government, it lacks a public train order, O'Hara told Skift. [1] Certares and Trenitalia failed to win the London maintenance facility but secured a depot in Paris with the assistance of the French government. [1] With manufacturer order books now stretched to delivery dates in 2030, 2031, and 2032, Certares expects its delivered rolling stock will unlock the operational permits required to cross the Channel before other competitors can arrive. [1]

Which international rail markets could follow?

Outside Western Europe, Certares is looking at high-density city pairs worldwide where passenger demand is concentrated, Skift reported. [1] O’Hara identified a planned high-speed rail line connecting Doha and Riyadh in the Middle East as an attractive route that will require an experienced third-party operator. [1] Conversely, O'Hara described the United States rail market as hit-and-miss, while characterizing investments in China's established high-speed network as complicated. [1]