How Italy's high-speed railways contributed to Alitalia's downfall

More than ten years ago, Francesco Galietti would fly the nearly 400-mile route from Rome to Milan for work. Today, he chooses the train.

Galietti, CEO of Rome-based political risk firm Policy Sonar, is part of a growing trend. According to 2019 data from Italy's state-owned railway company Ferrovie dello Stato, the number of passengers traveling between Rome and Milan by train has surged from 1 million in 2008 to 3.6 million in 2018.

Today, over two-thirds of travelers between the two cities opt for the train. This is a powerful testament to the success of Italy’s high-speed rail network, which launched in 2008.

The nearly 400-mile journey between Milan and Rome now takes just 2 hours and 59 minutes. Plus, with stations located in city centers, there's no need to arrive hours early – trains close their doors only two minutes before departure.

In contrast, consider the half-hour drive to Rome’s Fiumicino airport, checking in 90 minutes before departure, an hour of flight time, and then landing at Milan’s Linate airport, which is a 20-minute drive into the city. It's clear why many are now choosing the train.

This raises the question: with Alitalia set to shut down on October 15, did Italy’s high-speed rail system ultimately spell the end for the airline?

Galietti believes so.

‘Alitalia was a bird whose wings were clipped from the beginning – for an international airline, it remained overly focused on the domestic market,’ he explains.

This makes sense in one way – Italians tend to vacation within Italy, and international visitors often want to see the country’s major sights. For those coming from places like the US, flying into Milan and then continuing to cities like Naples or Rome is a natural next step.

However, Galietti points out, this domestic focus made Alitalia vulnerable to competition as the low-cost airline boom took off – and then, later, from high-speed trains.

‘It was a bad combination,’ he explains. ‘In the domestic market, they faced fierce competition from both low-cost carriers and trains. Personally, if I need to go to Milan, Turin, or Venice, I always take the train, like many others. The Frecciarossa (one of the high-speed trains) runs from city center to city center, not from an airport 20 miles outside the city – that’s tough competition for Alitalia.’

Tourists agree. Cristina Taylor, a frequent visitor from the UK, says she finds the train ‘much easier.’

‘You depart and arrive directly from city centers, avoiding the hassle of airport check-ins or the long transfers between airports and the city. The trains have also improved in recent years, offering designated spaces for luggage, making travel easier for international passengers.’

‘I believe it’s great value – you save both time and money.’

The new Dolce Vita

Today's high-speed rail system is a stark contrast to Italy's old railway network, which was notorious for its slow, outdated trains that often ran late.

There are even two competing high-speed train services to choose from. Trenitalia, the state-owned operator, offers the Frecce (‘Arrows’) trains – Frecciarossa, Frecciabianca, and Frecciargento (Red, White, and Silver Arrows) – covering different parts of Italy in a T-shaped pattern along the northern regions and then heading straight down the peninsula. The fastest Frecciarossa trains can reach speeds of 360 km/h (224 mph).

Meanwhile, the private company Nuovo Trasporto Viaggiatori introduced its Italo trains in 2012, connecting 54 cities daily. Italy is unique in having two high-speed train providers and also hosts the world’s first high-speed freight service, which operates between Bologna and Maddaloni in Campania in just three and a half hours.

Ticket prices are relatively affordable – regional (non-high-speed) train services are subsidized – and Galietti describes the fares as ‘reasonable’ compared to France, Germany, and Switzerland. Onboard, the experience is similar to flying with an airline: passengers are required to reserve seats, with no option to board without one. Travelers can choose their seats when purchasing tickets and earn points to gain higher status. Both Trenitalia and Italo offer lounges for their premium passengers at major stations.

Leading by example

Carlo Barbante is one of these travelers. As the director of the Institute of Polar Sciences at Venice’s Ca’ Foscari University, he frequently travels to Rome, opting for the Frecciarossa train.

“It’s just more practical for everything,” he shares. “I care most about the carbon footprint, but I also appreciate being able to check in just minutes before departure, walk around with ease, and feel safe and comfortable throughout the journey.”

As a climate scientist, Barbante has always chosen the train. “If we're encouraging others to lower their carbon footprint, we must lead by example – we should be in the front row, using public transport,” he explains. “It’s my duty – the train is one of the most dependable ways to reduce emissions.”

Before Italy's high-speed rail revolution, the trains were too slow to make the 330-mile journey from Venice to Rome feasible for a day trip. He would instead opt for overnight trains.

Until just a few years ago, there was a high-speed train that only stopped in Venice, Padova, and Rome, taking just over three hours. Now, with added stops in Ferrara, Bologna, and Florence, the trip takes just under four hours, but it's still faster than flying door to door.

Barbante recently traveled to Geneva from Venice entirely by train. “It was incredibly comfortable – there was no need to fly. I had ample time to work and unwind,” he shares.

“I believe high-speed trains are capturing a significant portion of the domestic flight market. They’re quicker and far more comfortable,” he adds.

The data supports his claim.

In 2019, Trenitalia commissioned a report to analyze the impact of high-speed trains over the past decade. The findings revealed a significant increase: the number of high-speed trains had doubled, and passenger numbers surged from 6.5 million in 2008 to 40 million in 2018, not even accounting for Italo users.

The fleet of high-speed trains expanded to 144, and by 2018, 69% of all travelers between Rome and Milan were choosing the train, a 7.4% increase in just three years. Meanwhile, air travel dropped by nearly 7% over the same period, with only 19.5% of the market share.

Italy’s rail revolution

There were clear ripple effects. While property prices in Milan fell by 20.5% from 2008 to 2018, the value of offices near the high-speed stations at Rogoredo and Porta Garibaldi rose by around 10%.

The number of tourists using the trains surged from 1.8 million in 2008 to 7.3 million in 2018. Popular routes include Rome to Florence and Venice – the latter once dominated by flights.

In fact, the connection between Italy’s rail and air transport was made clear in 2019, when talks of a potential merger between the struggling Alitalia and Trenitalia were brought up.

Mauro Moretti, former head of Ferrovie dello Stato, had a bold vision for a merger, says Galietti. His proposal was: “Why fight each other when we can integrate transport? His idea involved combining planes, trains, and buses for a seamless journey. It was his vision that led to the Frecciarossa revolution, and it seemed like a forward-thinking concept.”

However, without Moretti’s leadership, Galietti finds the idea 'fishy,' suggesting that regional train subsidies in Italy might have been an opportunity for Alitalia’s survival, had it merged with Ferrovie dello Stato. By that point, he says, the vision would have shifted from innovative to opportunistic.

In the end, Alitalia missed its chance. 'They had very few international flights and lacked control over their home market – others were in charge,' says Galietti, who adds that their cost structure ultimately led to their downfall.

As Alitalia prepares for its final flights on October 14, two of its former competitors, the Frecce and Italo trains, continue to thrive and expand.

Top image credit: Alessandro Bremec/NurPhoto/AP