Air Canada, TGV train company join group bidding for high-frequency fast rail project

SNCF Voyageurs was welcomed, but the airline’s move triggers concerns among rail advocates about competition, conflict of interest, and transparency of the bidding process. Air Canada and French train operator SNCF Voyageurs have joined a consortium vying to build and operate a new multi-billion-dollar fast electric train between Windsor, Ont., and Quebec City.

Cadence, one of three groups Ottawa picked in 2023 to submit detailed proposals for the future high-frequency train project, disclosed the last-minute additions of Air Canada and the TGV train operator as it submitted final bid documents to the government in late July.

Canada’s flagship airline, which has historically opposed high-speed rail projects involving cities on its most popular routes in Eastern Canada and Alberta, confirmed involvement but won’t share details, triggering criticism among rail advocates. Air Canada’s move to join Cadence’s team at the last minute doesn’t sit so well, he said. “It sure is suspect. A direct competitor who has fought against the rails for decades,” Langan said.

“The fact is that they have a well-known history to objecting to anything passenger-railed related.  I think they’re in it to try and control it. They’ll get all this VIA traffic and passenger data,” Langan added. “Certainly, a faster and more efficient rail speed would hurt them.” What Air Canada gets — and how much it is investing in Cadence — is unclear. The airline said its commitments to the Cadence team “do not require any supplementary disclosure.”

Pressed for details during a conference call with investment analysts Wednesday, Air Canada executives said they were precluded from discussing the airline’s role because of strict government bidding and confidentiality rules, but tried to suggest its role was minor.

“It doesn’t come with meaningful deployment of capital,” chief financial officer John Di Bert said.

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