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Ukrzaliznytsia

Ukrainian Railways Ukrzaliznytsia Eyes European Market with Low-Cost Ambitions

Ukrainian Railways (Ukrzaliznytsia) is setting its sights on becoming Europe’s next low-cost rail operator, with plans to eventually enter the European market as a budget-friendly yet high-quality alternative to traditional rail services.

Speaking on the show “The Red Line”, CEO Oleksandr Pertsovskyi revealed the company’s long-term goal:

“We have the ambition to become a cool low-cost railway operator in Europe — not just any low-cost carrier, but a truly competitive one,” he said.

Pertsovskyi pointed out that Europe’s most successful budget airlines — such as Hungary’s Wizz Air and Ireland’s Ryanair — don’t come from the continent’s dominant economies. Citing Ryanair’s Michael O’Leary as a personal role model, he suggested that Ukraine’s national rail company could follow a similar disruptive path in the European rail industry.

Ukrzaliznytsia is already laying the groundwork. It has expanded its international routes to Poland and Hungary, and has developed strong partnerships within the EU rail network. A significant milestone was the EU’s recent decision to provide €76 million in funding for a European-gauge rail line to Lviv — a gesture that Pertsovskyi sees as a vote of confidence in Ukraine’s role within Europe’s transport ecosystem.

Currently, Ukrzaliznytsia serves a broad spectrum of passengers, from those taking ultra-affordable suburban trains to plant potatoes in the countryside, to ultra-wealthy travelers choosing luxury carriages.

“We’re in a unique niche — covering everything from pennies-per-ride electrichkas to super-premium service used by people with billions,” Pertsovskyi said.

Still, entering the EU market won’t be without challenges. International train services are significantly more expensive than domestic ones, due in part to infrastructure fees paid to foreign rail operators, station access charges, and exchange rate factors — with fares often tied to the Swiss franc.

European night trains remain costly compared to budget flights, largely due to fragmented rail infrastructure, as seen in the troubled launch of the Brussels–Venice sleeper service. But with Ukraine’s growing international presence and increased trust from European partners, Ukrzaliznytsia could become the first Eastern European player to make a serious low-cost rail debut in the EU.

If successful, it may just bring a new wave of affordable rail travel across the continent — this time, from the East.

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