Air France is in talks with a leading rail freight company about forming a strategic partnership to run high speed train services.
The talks are with Veolia Transport, one of the biggest private freight operators on the continent.
If successful, it could see AF and the freight company, part of the Paris-based Veolia Environnement group, running high speed passenger services in Europe.
Such a joint venture will be possible after the de-regulation of European transport in January 2010 will allow new entries into the rail market for international services.
AF confirmed the talks in a statement which read: "In the context of the deregulation of European transport, effective as from 1st January 2010, Air France and Veolia Transport are examining the possibility of concluding a strategic partnership aimed at introducing a new player in the European high speed rail sector."
A start up of Air France rail services could see the carrier drop some of its short haul air services, possibly on routes like Paris-Frankfurt.
AF has already withdrawn four of its daily return flights between London Heathrow and Paris Charles de Gaulle because of competition from the high speed Eurostar services.
High speed trains runs by Thalys, which began in 2005, have also ended air services between Paris and Brussels.
With the opening of the TGV Est line last year, there is now a high speed line from Paris into Germany.
The completion of new track in the Netherlands either later this year or early next will also see a new high speed line from Paris to Amsterdam.
But a joint venture with Veolia would be the first time an airline had started up its own train services.
Analysts believe the de-regulation of European rail services could open up far more choice for passengers on short and medium haul routes.
This could change the face of ground transport in the same way that liberalisation of the European skies opened up opportunities for more airlines to compete.