Eurostar’s passenger traffic has plummeted by about 95 percent and faces the possibility of bankruptcy.
The operator of the high-speed train Eurostar has again asked the British government to provide relief, saying that the plunge in the number of passengers caused by the new crown (Chinese Communist virus) outbreak has left the company facing possible bankruptcy.
Eurostar, which runs between the UK and mainland Europe, with routes linking London, Paris, Brussels and Amsterdam, told the Financial Times on 17 December that demand for Eurostar rides had plummeted by about 95 percent because of a nationwide blockade triggered by the new virus, which has curbed international travel and commuting, and that Eurostar faced a “significant risk” of survival if it could not secure additional government financing.
Eurostar CEO Jacques Damas wrote to Chancellor of the Exchequer Rishi Sunak in November last year seeking assistance after the Treasury announced a bailout for British airports and other transport services, but these support measures are only available to British companies, and 55% of Eurostar’s shares are held by French state rail company SNCF, so Eurostar is not in the UK’s bailout category.
A spokesman for the UK Department for Transport said on the 17th that the government understands that Eurostar is facing significant financial difficulties and “has been in close contact with Eurostar on a regular basis since the outbreak of the epidemic” and “we will continue to work closely with them and we support the restart and recovery of international travel security”.
The remaining 40% of Eurostar is jointly owned by Caisse de dépôt et placement du Québec and Hermes Infrastructure of the UK, with Belgium having an additional 5% stake. The British government sold its Eurostar stake in 2015.
London-based Eurostar, which employs 3,000 people, said last November that it had only received unpaid leave funding relief from the British government, which provided 1.8 billion pounds ($2.45 billion) in relief for the U.K. airline industry and 1.8 billion pounds in relief for London Rail through loans, tax deferrals and financial assistance.
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