ABSTRACT
The inauguration of High-Speed Rail (HSR) services in Japan in 1964 was never meant to provide an alternative to the aircraft, but to increase capacity on the Tokyo-Osaka route in order to meet growing demand. The chapter begins by revisiting the model of airline and railway integration, followed by a brief review of the literature on air-rail substitution to highlight the dominance of 'competition' rather than complementarity in the debate. An important aspect of airline and railway integration, as originally envisaged, is close commercial cooperation between the airline and the Train Operating Company (TOC). A prerequisite for airline and railway integration is a railway station at the airport. Givoni and Banister showed the potential for mode substitution, and hence for airline and railway integration, at London Heathrow airport. For different commercial reasons and due to the regulatory barriers that prevent airlines from merging or taking over one another, airlines form strategic cooperation through global alliances.
