Puente studies denouncing Ouigo before the CNMC for unfair competition

Puente studies denouncing Ouigo before the CNMC for unfair competition

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The Minister of Transport and Sustainable Mobility, Óscar Puente, confirmed this Monday that they are studying the formula to denounce the French railway operator Ouigo for carrying out “deeply unfair” practices against its competitors Renfe and Iryo in the high-speed corridors where it operates, opening the door to filing this claim before the National Markets and Competition Commission (CNMC).

As stated in Zero Wave and has collected Europa Pressthe former mayor of Valladolid has denounced that Ouigo’s pricing modelbased on low prices and selling tickets “well below cost from the beginning, have dragged” Iryo and Renfe “to very bad results in corridors that were highly profitable”.

“Railway liberalization has brought positive things, it has obviously increased supply, it has reduced prices, but has reduced them to a level that is unsustainable for the three competitors. The competition has to be fair and has to allow the three companies to obtain profits or, at the very least, not have losses,” argued Puente.

They will have to raise prices

The minister believes that given the losses recorded by the subsidiary of the incumbent French SNCF, that exceed 40 million euros per year, “invariably” they will have to raise prices. “Unless the French operator is prepared to lose money on the ten years they currently have a committed presence in the most profitable high-speed corridors in Spain, will have to raise prices. There is no other solution“, stressed the minister.

After his statements in which accused Ouigo of price dumpingand asked what measures he will take to prevent him from continuing to commit it, the ministerial official has indicated that “The first thing it has done is make it public by land, sea and air and with all the intensity in the world“In addition, he claims to have spoken with the French Government, because this “unfair” competition not only occurs in Spain with Ouigo, but is also being “tremendously complicated.” for Renfe to enter France.

“There is no comparison in the conditions under which this operator (Ouigo) has entered Spain with those we have in France. What’s more, the other day, with a certain hesitation, someone who represented the French company He told us that we are not entering France because we are traveling with Talgo material, which must be approved and so on. But we have been working in France for some time, and in fact we entered France with French material, with the first Alstoms that we used on the Madrid-Seville line. But they forced us to re-homologize them. All the difficulties in the world. Therefore, these are conditions in which there really is no type of reciprocity.“, he denounced.

Protect Renfe

The minister has defended that, in the face of Ouigo’s “deeply unfair” practices, “what formulas to use” is being studied and even going to the CNMC with the aim of protecting the Spanish public operator, Renfe.. “My duty as minister of this country is to protect Renfe, because by protecting Renfe I am protecting rail transport in our country. That is the reason why a public transport company is necessary,” Puente pointed out.

The minister recalled that Renfe is the company that provides service in the corridors where not everyone wants to enter. “There is a lot of talk about the train to Extremadura, the train to Galicia, You will not see these companies enter there, because that is not profitable. The one that provides service in those corridors is Renfe“, has underlined.

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