Regulation, networks, and competition in the French air transport industry in the face of the effects of the TGV and low-cost airlines companies

Abstract

French air transport occupies a strategic position in European territorial traffic, but has been undergoing transformations marked by centralization around airport hubs, competition from the TGV (High-Speed Train) and the expansion of low-cost airlines companies. Thus, this article analyzes the structure of passenger flows and the competitive dynamics of the sector. This quantitative study uses official data to understand how the sector has reorganized itself, particularly between 2019 and 2025, a period marked by the health crisis, the subsequent post-pandemic recovery, and regulatory changes. The study highlights two fronts of competition: in the domestic market, the airline industry faces competition from the TGV, whose importance has increased following the Climate and Resilience Act, which restricts flights shorter than two and a half hours when a rail alternative exists, intensifying competition since 2023 and expanding rail service in 2024. In the European context, low-cost airlines companies have expanded their presence and reduced the market share of traditional French airlines. This trend, combined with market liberalization and sustainability policies, is contributing to a reshaping of the market and increasing pressure on traditional airlines, while the sector is still striving to fully recover to pre-pandemic levels.