Open a bar in a desert and it will remain a desert. Open a hundred and it will become Las Vegas. Ergo: competition stimulates demand, and you don't need economists to figure it out. And if the question is also good for the environment, success is even greater.
Let's take the Italy of trains ad High speed. Since when Italo of NTV began connecting the main cities of the country in 2012, Trenitalia with hisRed Arrow not only did it not lose passengers but it gained several. More turnover for one of the most important companies in the state and cleaner air, because trains pollute less than cars and planes.
The data can be read in the reasons with which the Commissioner for Transport of the European Union Siim kallas illustrated the proposals contained in the IV EU railway package, where you can see how Italy has been able to prove that it is the absolute protagonist in great innovations.
Competition onHigh speed started less than a year with the entry of NTV has produced significant results for the country and recognized by the EU itself, with a growth of AV market in 2012 by about 15% on the previous year. A trend therefore in sharp contrast to the other economic sectors, which almost all recorded a negative trend due to the recession.
With the start of competition, the incumbent Trenitalia therefore not only did it not experience any loss of traffic, but it even increased the number of travelers transported by 6-7 percent. And for the first time in Italy the public transport (high speed train) stole traffic from the private transport (car), with positive effects on safety, the environment and energy consumption.