Comparison between Italo NTV and FrecciaRossa with legal, social and economic considerations

With the entry into service of the new high-speed line from Milan to Bologna, in December

2008, some ETR.500 multitension received its name of "Frecciarossa" and were equipped with

9 https://it.wikipedia.org/wiki/Treno_FS_ETR.500. 8

Comparison between Italo NTV and FrecciaRossa

a new livery, where the shades of gray the previous livery AV adds a red band under the

windows running around the convoy to reach the front of the two-drive.

Italo revolutionizing the classical French setting, doesn’t have the locomotives arranged at their

outer ends as in the case of the French TGV or the Italian ETR.500. Power is distributed on all

the elements that compose it, along the lines of the concept Italian of electric train and

following the example of other rail vehicles of modern design as the Siemens Velaro and the

Japanese Shinkansen. The train incorporates articulated trolleys, this technology has contributed

greatly to the success of the TGV. The AGV has been designed to achieve maximum speed, in

commercial operation, 360 kph, however the Italian railway infrastructure currently allows a top

speed of 300 kph.

The articulated architecture (with the carriages positioned between the carriages) is a solution

that allows a high level of security and, combined with a system of distributed power (with

motors placed under the train on the trolleys), allows to increase considerably the number of

places on board, eliminating the need of the locomotive and significantly reducing the weights.

In addition, the new architecture, according to Alstom, gives considerable flexibility to the

operators, which can vary the length of trains from 7 to 14 carriages and the offer of seats from

250 to 650, depending on demand. This substantially lowers the operating costs.

The AGV is also designed so as to have a reduction of about 15% of the energy demand

10 .

compared to trains proposed by the main competitors

The train is equipped with the latest version of the standard ERTMS signaling, so you can

operate on all European rail lines.

The trains have a livery of dark red color with a yellow band that is repeated throughout the

length of the train.

10 https://it.wikipedia.org/wiki/Automotrice_%C3%A0_grande_vitesse. 9

Comparison between Italo NTV and FrecciaRossa

Figura 3 – Freccia Rossa and Italo trains: left – side view

Source: www.turistaoggi.it

5. Routes

In addition to speed, another ground of challenge lies in the links.

The Frecciarossa trains run through the guidelines Turin-Salerno, Venice - Naples and Milan-

Bari. They are available for the connections between the following stations:

 Turin (Porta Nuova) - Turin (Porta Susa) - Milan (Central) / Milan (Porta Garibaldi) -

Milan (Rogoredo) - Reggio Emilia (Mediopadana) - Bologna (Central) - Florence (Santa

Maria Novella) - Rome (Tiburtina) - Rome (Termini) - Naples (Central) - Salerno.

 Venice (Saint Lucia) - Venice (Mestre) - Padua - Rovigo - Bologna (Central) - Florence

(Santa Maria Novella) - Rome (Tiburtina) - Rome (Termini) - Naples (Central).

 Milan (Central) - Reggio Emilia (Mediopadana) - Bologna (Central) - Forli - Rimini -

Pesaro - Ancona - Pescara (Central) - Foggia - Bari (Central).

In the Turin-Salerno train also stops in Arezzo and a pair of trains also stop in Piacenza, Parma,

Reggio Emilia and Modena, traveling, then, the traditional line and not the AV. To complete the

offer there are some Frecciarossa with paths limited to the beginning and end of the day that

travel the routes: Rome-Naples; Florence-Milan; Turin-Milan; Bologna-Naples (with a stop in

Arezzo); Naples and Florence, as well as a pair Milan-Rome, along the traditional line between

Milan and Bologna, making stops at stations of Piacenza, Parma, Reggio Emilia and Modena.

In 2014 it was announced the project to land Frecciarossa directly to the airports of Rome

Fiumicino, Milan Malpensa and Venice Marco Polo. 10

Comparison between Italo NTV and FrecciaRossa

Figure 4 – FrecciaRossa connections

Source: www.trenitalia.com

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Routes served by NTV are those of the Italian high-speed rail network, comprising 13 cities

and 17 stations with 52 daily trips. Italo’s High Speed train service connects three lines:

 Turin-Salerno, stops in Milan, Reggio Emilia (Mediopadana), Bologna, Florence, Rome

and Naples. initially limited to the connection between Milan and Naples, later extended

to the two existing terminals. As of December 13, 2015 the terminus of Porta Susa will

be moved to Turin Porta Nuova.

 Turin-Ancona, stops in Milan, Reggio Emilia (Mediopadana), Bologna, Rimini and

Pesaro; activate in December 2013 to Ancona. In September 2014, however, it was

announced the suppression of route Adriatic from next December to insufficient

passenger traffic. In the summer of 2015 reactivated to Rimini and only on weekends up

to Pesaro and Ancona.

 Venice-Naples-Salerno, stops in Padua, Bologna, Florence and Rome; initially limited to

Naples, in 2013 extended to Salerno.

In Milan, Rome and Venice there are two station options: Porta Garibaldi and Rogoredo in

Milan, Tiburtina and Ostiense stations in Rome, Mestre and Santa Lucia in Venice.

From December 2015 Italo will also stop at the Milan Central Station, improving the frequency

12 .

and the offer of the railway system in northern Italy

11 www.italotreno.it

12 www.italotreno.it 11

Comparison between Italo NTV and FrecciaRossa

The network continues to expand with a new section: passengers can reach the city of Verona,

which will be connected to Naples via Rome, Florence and Bologna.

Figure 5 – Italo’s destination

Source: www.italotreno.it

6. Tariffs

Since 2012, the two high-speed trains that travel the rails Italian challenge each other for those

who make best deals. Both Italo and Frecciarossa, are designed to be on time, clean,

comfortable and offer the opportunity to "work" while you are traveling. NTV, offering the

possibility of choice, probably favored travelers in terms of quality and price, forcing the

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previous "absolute monarchs" rails to review company policy

We start from the ticket. Tickets cost between the two companies differs in several euro in favor

of Italo, if long as from Milan to Rome. If by chance, we purchased a ticket for Italo in

economy class, low cost to go and come back, forget the ticket reimbursement in the event of an

unexpected stop us from leaving. Trenitalia adopts identical policy.

13 www.lefrecce.it/B2CWeb/search.do?parameter=searchOutputViewer&cFID=YIpEdVI8EvRy 12

Comparison between Italo NTV and FrecciaRossa

The Frecciarossa consists of a carriage Executive, three carriages Business, a carriage Premium

and five carriages Standard. Italo, however, divides the environments in three categories: Smart,

First and Club with different tariffs to choose from Basic, Economy and Low Cost for Smart.

14

Now we talk about flexibility of the ticket.

With Italo independently you are in Smart, Extra Large, or First Class, you have three choices:

 Flex, with time change ticket free;

 Economy, changing time permitted, butfixed extra of 20% (assuming it remained place);

 Low cost, change not allowed.

Similarly to NTV, with Trenitalia there are three choices:

 Basic, with time change of the ticket free;

 Economy, with Timetable change subject to extra (if there is place);

 Super economy, with no time change admitted.

Both Nuovo Trasporto Viaggiatori and Trenitalia offer the possibility to use monthly passes,

being able to take advantage of favorable prices. We see the details of the offers.

We start with monthly subscription of Italo (NTV) conditions:

Pro:

- It costs less. On average 33% less.

- You have to book so you'll always have a seat.

Points of weakness:

- Have fewer trains available.

- You must always book a seat.

Functioning of bookings subscription to Italo (NTV):

The monthly subscription on Italo allows you to book 60 trips for 30 days consecutive, on a

certain route. The subscription can be activated from any day of the month (not necessarily

14 quifinanza.it/soldi/frecciarossaitaloguerratariffecominciatarischioduopolio/1563/ 13

Comparison between Italo NTV and FrecciaRossa

from the first of the month as Trenitalia). We must always reserve a space (and the time) of

return: You can not get on the train without a reservation (as you can do with FrecciaRossa). In

addition you can book up to a maximum of 7 days later than the day when you are book, (and

not for all 30 days). Attention places reserved for subscribers are limited and end up very

quickly, so you have to remember to book as fast as possible, otherwise you may have to buy a

ticket at full price not being able to use the subscription.

Now there are monthly subscription of Frecciarossa (Trenitalia) conditions:

Pro:

- You have more trains and thus more times available.

- You do not always reserve a seat.

- The subscription lets you get on all Freccia is on your route booked.

Points of weakness:

- It costs more, 33% more.

- If you do not book the place there is a high probability of stand

The Trenitalia subscription allows you to use the high speed Freccia (FrecciaRossa and

frecciabianca), and normal train as long as you are on the route of your subscription. Regional

trains are excluded. It reasons by city: eg. Milan-Bologna allows up / down from all stations in

Milan and Bologna.

You can choose to reserve your seat (surcharge of 3 euro), or look for a free place once boarded

the train. If you can not find it you'll have to stand up, but if you have a subscription, you can

always go up.

In conclusion, we can say that both subscriptions have pros and cons, which one to choose

depends on the needs of the traveler. You can observe in the matrix price and the new rates

Economy and SuperEconomy in force since 14 June 2015. 14

Comparison between Italo NTV and FrecciaRossa

Figure 6 – Frecciarossa prices

Source: www.uniquevisitor.it

Also with Cartafreccia Senior and Young you will have a discount of 20% on the ticket basis.

Figure 7 – Italo prices

Source: www.uniquevisitor.it

Of course, you can have promotions and the lowest rates if you are moving ahead on the

playing time of booking.

Trenitalia has sent a letter to the Authority and Transport Authority competition and the market

in order to propose to activate a "Subscription unique" TrenitaliaNtv so that for commuters of

the High speed will be possible to access indifferently to Frecciarossa or Italo. Especially since

the times of the two companies would complement perfectly on any high-speed circuit Turin -

Milan - Bologna - Florence - Rome - Naples Salerno. 15

Comparison between Italo NTV and FrecciaRossa

Note how the prices of Italo, that initially were higher Trenitalia, are first aligned and then fell

so now are lower. Italo has cut prices by positioning the company as the most economical, the

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rate low cost comes even 23.70 €

7. Online services

One of the most interesting service is the