As the world's second-largest trainer attempts to increase rail demand from Europe, Alstom is talking about high-speed, double-decker operations through channel tunnels.
CEO Henri Poubart-Lafarge said the company's trains could increase routes from London to the continent, adding that its Avelia Horizon will be able to cross the Undersea channel tunnel.
"The double-decker train has a great advantage. It's a very high-speed train with the lowest cost per seat and the highest capacity."
The new train can run at 300 km/h, and Alstom has signed a contract to provide the French railway operator SNCF, although delivery has been repeatedly delayed and is not expected until 2026.
He added that any new train requires operator approval and the process could take "a few years". Trains from London to the continent also need to be approved by regulators and adhere to strict safety rules for channel tunnels.
The comments are published in Europe amid a surge in rail demand in Europe, as new providers seek to compete with Eurostar. Last week, the UK and Swiss governments outlined plans to encourage direct services between London and Switzerland.
Poubart-Lafarge declined to comment on business discussions, but said "such an order will take years." He added that the business is “basically talking to everyone” and that the train is designed to operate on all major European routes.
"We can raise (train) through the tunnel," he said. "Whether it's Eurostar or other competitors, we'll see it."
Railway providers including Sir Richard Branson’s Virgin Group and the Italian Railway are also exploring new services to challenge Eurostar’s 30-year monopoly in the UK and continental Europe.
Industry experts say that certified new trains are the operation of the access tunnel, which is one of the biggest challenges for the proposed new entrants.
Alstom, benefiting from increasing competition for continental routes, signed a €800 million contract to provide and maintain its 12 double-decker trains for the newly established private operator of France.
Poubart-Lafarge said that modernization of European railway infrastructure and increased transportation will also benefit the company in the coming years. It has seen recent order growth in Germany, including a €3.6 billion contract that will provide commuter trains to the S-Bahn Rheinland network in western Germany.
Strong demand in Europe helped the business report orders rose to €19.8 billion in the year ended March 31, up 4.7%, slightly higher than analysts' estimates.
The business also reduced its debt burden from €3 billion at the end of March 2024 to €434 million the following year. Last year, the company was rocked by warnings of expected delivery and slow cash flows compared to expectations of expected delivery and issues compared to contracts inherited from Canadian company Bombardier, acquired in 2021.
It launched a €1 billion capital raising in May to help cut debt and sell its U.S. signal business and sold its German rail factory to defense company KND, which plans to reuse the site to build tanks.
Poubart-Lafarge said its debt challenge “seems to be water under the bridge,” adding that the company will not seek to sell more divisions.
However, the company won't pay dividends in fiscal year 2024-25, and Poubart-Lafarge says it will do so when it's in a "neutral cash position."