The Virgin Group told Fortune that the company was planning to raise up to £700 million ($900 million) to set up its own cross-channel rail service, which would pose the first rivalry to the Eurostar service since it launched its service in November 1994.

The group said the fundraising would amount to £300 million in equity and £400 million in debt. The line could be ready to operate train services from 2029. 

“The cross-Channel route is ripe for change and would benefit from competition,” a spokesperson for Virgin Group told Fortune.

“We think Virgin is the right brand to deliver this given its award-winning experience in the train industry, and track record for building globally successful travel companies. While Virgin is not committing to launching a service just yet, we are seeking investment from like-minded partners to invest alongside Virgin, and we are delighted with the progress made so far.” 

Virgin Group, whose other main rival is believed to be Spanish-led Evolyn, will face significant obstacles to challenging Eurostar’s dominance. 

Both providers have been held up in bids to open cross–channel rail services over a dispute about space at the Eurostar-leased London depot. The competitors have urged regulators to investigate whether there is space at the east London depot that houses high-speed trains, after disputing Eurostar’s claim that the area is at full capacity. 

Virgin’s return to rail

News of a potential 2029 departure for Virgin’s proposed cross-Atlantic service, which was first reported by the Financial Times, would see Branson return to the U.K.’s rail network for the first time in a decade.

The Virgin Trains rail franchise ended its 22-year stint as the U.K.’s longest-running service in 2019, after the group’s partner, Stagecoach, was disqualified from bidding after the Department for Transport said it didn’t meet pension rules. Branson said at the time that he was “baffled” by the decision.

Eurostar operates rail services from London across continental Europe, servicing cities including Paris, Amsterdam, and Brussels.

A spokesperson for Eurostar told Fortune the company welcomed the development of more rail services across Europe. 

“Competition in the high-speed rail sector is another example of the growing demand for rail transport in Europe,” the spokesperson said.

“We have been operating in a competitive environment for years, competing with airlines, ferries, and buses. We still have a common challenge with our future rail competitors: to convince more travelers to choose the train.”

London St. Pancras Highspeed, which runs the station and the high-speed rail line at Folkestone, said in February that plans to nearly triple capacity at London St. Pancras could open the way for more rail providers to operate from the station and connect to new cities across Europe. 

It is hoped that London St. Pancras will be able to service 5,000 passengers an hour after the expansion is complete, up from 1,800 an hour currently, and expand the service to cities like Frankfurt and Zurich.

A spokesperson for London St. Pancras Highspeed told Fortune: “The high-speed line is currently operating at only 50% capacity, highlighting significant opportunities to expand cross-channel services. This will not only provide passengers with greater choice and lower fares but also promote sustainable tourism and deliver a significant boost to the UK economy.”