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Does AVE play fair?

Although it does not seem so, traveling by bus could end up two times more expensive than taking the high-speed train. Lower AVE train prices have allowed Renfe to increase passenger sales by 22%, which is similar to increases seen on Spanish roads and airlines. But Renfe's aggressive discounts are threatening bus profits.

Labor unions argue that AVE is using illegal strategies to compete with the buses, because the train relies on state subsidies to allow it to offer steep discounts. Unlike trains, bus lines are not mostly responsible for maintaining the surface they ride on, which makes a direct comparison complex. Renfe does build its rails and pays a use tax. In any case, the CNMC should find a way to increase transparency around these transportation services and make sure that they play fair.

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