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And yet Europe has all those discount airlines that people apparently use. A Munich-Frankfurt route is a lot like a Boston or DC to NYC route, which is indeed popular by train in US. (Though traveling that by plane is also popular for reasons I don't understand outside of some fairly specific circumstances like an early morning meeting.)

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Borders. That's the problem in the EU. Cooperation for massive infrastructure project beyond a single line or a tunnel is very hard to achieve.

Discount airlines are discount mostly because of tax incentive to develop small local airport around the EU. Of course they are popular. In the UK, from London, it is basically cheaper to get anywhere in the EU than anything north of Birmingham.

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