Greg O’Hara, founder of private equity firm Certares, said his company has invested approximately $2.3 billion in European and UK rail infrastructure. Speaking at the Skift Transatlantic Summit in Dublin on October 15, 2026, O’Hara outlined a strategy built on the expectation that more governments will follow France’s lead in restricting short-haul flights where train alternatives exist.
Flight bans drive Certares strategy
France already prohibits domestic flights if a direct train journey takes less than 2.5 hours. O’Hara stated that other European nations are likely to enact similar legislation, creating a favorable environment for rail operators.
“So we like trains because France has passed a law, and other European countries are going to pass a law that if it’s within a certain distance, you can’t fly there anymore,” O’Hara said. He noted that the firm views this regulatory shift as a primary catalyst for its capital allocation in the sector.
Certares is partnering with Ferrovie dello Stato, the Italian state-owned group behind Trenitalia, to execute its rail ambitions. The firm aims to establish a competitor to SNCF in the French high-speed rail market. O’Hara lives in Milan and spoke via video from Hitachi’s Italian offices, where the company manufactures train sets.
Operational challenges and distribution hurdles
O’Hara identified two main limits to growth in the sector: track availability and rolling stock. He noted that the order book for trains is currently worse than for aircraft, which could constrain expansion. Additionally, he highlighted distribution as a significant barrier for new entrants.
“It is almost impossible for a travel agent or OTA to sell a train ticket because train companies have historically paid distributors little or nothing,” O’Hara explained. This lack of commission structure has historically kept rail travel out of mainstream online booking channels.
The firm is also looking at markets in Germany, Greece, and Spain. O’Hara described Poland as the “superstar” of European investment outside of western economies and praised Ireland. He said he would avoid the Nordics because the markets are small and consumer behavior is niche.
Beyond rail, Certares is investing in wellness and longevity through historic thermal-springs hotels. O’Hara reported that Palazzo Fiuggi, located outside Rome, has seen a 32 percent year-over-year increase.
Source: Skift
