Air France-KLM Plans Rail Transport Business With Veolia

Paris, France (AHN) - Air France-KLM will soon venture into the high speed rail travel service. Officials of Europe's largest airline are in exploratory talks with Veolia's transportation unit, Europe's leading private rail freight operator, about the plan.

Bloomberg reported that the two firms are looking into strategic partnerships to establish a new player in European high-speed rail, according to AFK spokeswoman Brigitte Barrand.

Veolia spokesman Jerome Simon, on the other hand, said that "it's too early to say what routes they would serve'' or what brand the venture will carry.

If the plan pushes through, short-haul flights will no longer be available and will instead be replaced by rail transport. According to unofficial reports, Veolia will operate trains from AFK's hub airport in Paris and to other European destinations.

The joint venture, however, will still focus on international travel. The European Union reportedly plans legislation to free up the international rail passenger market by 2010..