A New Challenger on the Tracks: Avanti West Coast Co-Owner Aims to Rival Eurostar with a €1bn Investment

The world of high-speed rail travel between London and Paris is about to get a lot more interesting. FS Italiane Group, a co-owner of the UK’s Avanti West Coast, has unveiled ambitious plans to launch a €1 billion (£856.6 million) rival to Eurostar, the long-standing king of Channel Tunnel passenger services. Announced on April 8, 2025, this move signals a potential shake-up in cross-Channel travel, promising increased competition, greener options, and a fresh alternative for passengers by 2029.

Breaking Eurostar’s Monopoly

Since the Channel Tunnel opened in 1994, Eurostar has enjoyed a monopoly on passenger rail services connecting London and Paris. While it’s been a reliable option for millions of travelers, the lack of competition has left some yearning for more choice, better pricing, and improved services. FS Italiane Group’s bold initiative could be the answer. Partnering with Spanish mobility company Evolyn through a memorandum of understanding, the Italian rail giant aims to roll out high-speed services using trains made in Italy—likely inspired by its sleek Frecciarossa models.

This isn’t just a pipe dream. FS Italiane has already committed €1 billion to the project, underscoring its seriousness about cracking into this lucrative market. The company isn’t new to the game either—it’s been operating in France since 2021 and holds a 30% stake in Avanti West Coast alongside FirstGroup, as well as ownership of the UK’s c2c rail service. With this experience, FS Italiane is positioning itself as a credible contender.

Why Now?

The timing feels right. Eurostar’s dominance has faced scrutiny in recent years, especially as open-access challengers like Virgin Group and Evolyn have started eyeing the route. Getlink, the Channel Tunnel’s operator, has even expressed enthusiasm for filling spare capacity, hinting at a market ripe for disruption. FS Italiane’s plan aligns with a broader push for sustainable travel, too. In its statement, the group emphasized its goal to “enhance rail competitiveness on the Paris-London route, providing an alternative to air travel while contributing to a more environmentally friendly, customer-centric mobility sector.” With climate concerns top of mind for many travelers, a high-speed rail option could siphon passengers away from short-haul flights.

What’s in It for Passengers?

If this rival service launches as planned in 2029, passengers could see some real benefits. Competition tends to drive down fares and push operators to up their game—think better onboard amenities, more frequent services, and perhaps even a rethink of the current Eurostar experience. FS Italiane’s Italian-made trains could bring a touch of Mediterranean flair to the journey, potentially offering a distinct vibe compared to Eurostar’s French-British hybrid.

That said, it’s not all smooth tracks ahead. Launching a new international rail service comes with hefty regulatory and logistical hurdles, from securing tunnel slots to meeting safety standards. Brexit-related red tape has already delayed other would-be Eurostar challengers, with some estimates suggesting new entrants might not hit the rails until 2028 or later. FS Italiane will need to navigate this complex landscape to deliver on its 2029 timeline.

Avanti West Coast’s Mixed Reputation

FS Italiane’s involvement raises an eyebrow when you consider its track record with Avanti West Coast. The UK operator, which runs trains between London and cities like Manchester and Glasgow, has faced criticism for reliability issues. In the year ending March 31, 2024, Avanti posted a turnover of £1.01 billion but was ranked the third least reliable operator in Britain by the Office of Rail and Road, with 6.9% of its trains canceled. While its pre-tax profit dipped slightly from £12.8 million to £12.3 million, the financials show it’s a cash cow—yet passenger trust has taken a hit.

Could this Eurostar rival be a chance for FS Italiane to redeem its reputation? A successful launch might prove the company can deliver on big promises, but it’ll need to avoid the pitfalls that have plagued Avanti, like crew shortages and service disruptions.

The Bigger Picture

This isn’t just about one company’s ambitions—it’s part of a wave of interest in the London-Paris route. Richard Branson’s Virgin Group and Evolyn are also in the mix, with at least five firms reportedly vying for a slice of the pie. The Channel Tunnel, a marvel of engineering, has long been underutilized for passenger services, and this influx of competition could finally unlock its full potential.

For now, travelers and rail enthusiasts alike will be watching closely. If FS Italiane pulls this off, 2029 could mark the start of a new era for cross-Channel travel—one where Eurostar no longer calls all the shots. Until then, it’s a waiting game to see if this €1 billion bet pays off.

What do you think—will this rival give Eurostar a run for its money, or is it too ambitious to succeed? Let me know in the comments! And if you enjoyed this deep dive, consider subscribing to the City AM newsletter for more updates on stories like this one.