State-run train numbers cut due to fierce private competition

The state-owned railway carrier ŽSSK will cut the number of inter-city trains on the Bratislava-Žilina-Košice route from the current 41 to 25 in response to what it calls a price war launched by the private carrier RegioJet. At a press conference, ŽSSK director Pavol Gábor said that it's not possible to compete with a company that offers transport at half of the real costs. Gabor sees the low RegioJet fares as part of a dumping strategy, pointing out that RegioJet fares for the 100-kilometre long route cost passengers one-third or even a half less than the fares charged by the same company on the Bratislava-Komárno route of a similar length, where the service is funded by the state but operated exclusively by RegioJet. Gábor believes the motive of such behaviour is all about the destruction of the competitor, to be followed by domination of the market and a subsequent hike in fares. "The dumping of prices aims at only one single goal: the takeover of the clients of the competition. ŽSSK can't behave so irrationally, however. It can't participate in the price war", said Gábor. The private rail operator RegioJet rejects ŽSSK's accusations. According to PR manager Tomáš Bořuta, state run inter-city trains operated at a loss long before the arrival of RegioJet's trains. "RegioJet hasn't started a price war. On the contrary, all discounts and advantage fares are offered to passengers only for us to be able to keep pace with ZSSK", said Bořuta. Despite the state-run rail operator offering a series of innovative new rail options, including free rail for pensioners and students, it has been steadily losing passengers. The operator recorded a 28 percent drop in inter-city passengers in January, followed by a drop in February of 25 percent, and a drop of 15 percent in March.