Air France-KLM said last year it was in talks with Veolia about a partnership to create a new high-speed rail player in Europe when competition in rail transport opens in 2010.
“The marriage between Air France and Veolia Transport in rail transport seems to be going nowhere,” Les Echos said.
“The two partners, according to our information, are no longer on the same wave length.”
Apparently Air France is reluctant about the deal as it feels details of the future regulatory framework are still unclear.
But the airline is still mulling the possibility of offering train services on shorter intercity routes in France and Europe, the paper said.
Air France-KLM and Veolia were not immediately available for comment. (Reporting by Matthias Blamont, Dominique Vidalon; Editing by Hans Peters)