"Not a Public Service"? SNCF CEO’s TGV Remarks Spark Outrage Over High Ticket Prices

SNCF CEO Jean-Pierre Farandou has ignited a heated debate after stating that the TGV service does not qualify as a public service, justifying its high ticket prices. Critics argue that the railway company, which receives billions in public funding, should be more accountable to passengers, while legal experts call for pension reforms and salary caps within the organization.

SNCF’s high-speed rail service, the TGV, has long been criticized for its rising ticket prices, with passengers frequently complaining about affordability. In a recent interview with Le Progrès, SNCF CEO Jean-Pierre Farandou defended the pricing strategy, asserting that TGVs are not a public service and must operate under market conditions.

"When we talk about TGV prices, we must remember one obvious fact: it is not a public service," Farandou stated. "The TGV activity must earn its living. There is no subsidy. Like any business, it must generate revenue to cover costs and reinvest."

Unlike TER (regional trains) and Intercités, which receive financial backing from the State and regional governments, the TGV network operates without direct public subsidies. Profits generated from ticket sales help fund network renewal and infrastructure improvements, according to SNCF.

via @franceinfo : #SNCF : le #TGV est-il un service public ? //t.co/pzmHQjJjsI

— Matthieu Béjot (@MatthieuBejot) February 9, 2025

Public Reaction: "Indecent and Inflated"

Farandou’s comments have triggered strong backlash from commuters and commentators, many of whom find it hard to accept that a state-owned railway company would not classify its flagship service as public transport. Speaking on Les Grandes Gueules, radio personality Zohra Bitan called the statement "indecent and inflated," criticizing SNCF for charging excessively high ticket prices despite remaining a publicly owned company. Meanwhile, according to BFM RMC, lawyer Charles Consigny dismissed SNCF’s claims of financial independence, pointing out that the railway received EUR 20 billion in public funds in 2022, a sum four times the budget of France Télévisions.

The debate has also reignited calls for pension reforms and financial restructuring within SNCF, particularly regarding controllers' retirement benefits. "If the SNCF claims that the TGV is not a public service, then I call for a return to a fair retirement system for controllers—why should they benefit from a special pension scheme?" Consigny argued in an interview with RMC and RMC Story. The lawyer also pushed for salary caps for SNCF executives, citing former executive Florence Parly, who allegedly earned EUR 52,000 per month, according to BFM RMC. "SNCF had to manipulate rules to justify these executive salaries. I call for an audit to trim the fat of this bureaucracy so we can finally lower ticket prices."

SNCF’s Legal Standing: A Public Service in Name Only?

While SNCF presents itself as a public service provider, the distinction between state-funded train services and market-driven operations is at the heart of the controversy. According to franceinfo, SNCF's TER and Intercités services operate under contractual agreements with the government, ensuring public service obligations. However, the TGV network does not have such a contract, making it financially independent from direct state intervention—at least from a legal standpoint.

A transport specialist confirmed this, stating, "For Intercités, there is a contract between the State, the Minister of Transport, and SNCF. For TER, the regions have contracts with SNCF. For TGV, there is no contract." This legal interpretation supports Farandou’s claim but does little to ease public frustration over high fares and the perception that a state-owned company should provide affordable transport for all citizens.

With SNCF holding a near-monopoly on high-speed rail in France, critics are questioning whether greater competition or restructuring is needed. Proposals include:

• Opening more routes to private operators to drive fare competition.
• Reforming SNCF’s financial structure to reduce overhead costs.
• Reviewing pension schemes to align railway workers' benefits with other public sector employees.

While Farandou maintains that the TGV must remain financially self-sufficient, growing public discontent suggests that political pressure for reform could intensify in the coming months. As France debates the future of its rail network, passengers are left wondering: if the TGV isn’t a public service, why is it still so expensive?

Source: BFM RMC; franceinfo