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Direct Eurostar services between London and Amsterdam will be operating by the end of the year, sparking a major price war with airlines.

Initially there will be two trains a day and the journey from St Pancras International to Amsterdam city centre will take just under four hours.

Direct Eurostars between London and Rotterdam are also said to be in the “final stages of preparation” and will follow shortly afterwards.

The Amsterdam launch will be in time to seize a share of the lucrative Christmas market. More than three million passengers a year travel by air between London and Amsterdam, making it one of Europe’s busiest routes.

Eurostar is now set to challenge companies including British Airways and easyJet.

A company source said: “We will compete with the low-cost airlines on price, speed, ease, convenience and quality of service.”

The train operator is already taking on airlines on its Paris and Brussels routes, offering fares as low as £25 one way. It also highlighted the start this Sunday of its new e320 trains between London and Brussels.

Speaking in the Belgian capital, Euro-star chief executive Nicolas Petrovic said the Brussels service was part of a £1 billion investment programme, including 17 of the e320 stock and refurbishment of original trains.

The terminal at Brussels Midi has been renovated. “The introduction of the e320 on the Brussels route marks an important milestone in the travel experience for customers,” he said.

“With demand for high-speed rail over plane on the increase we are gearing up to expand our reach to Amsterdam and Rotterdam.”

Marjon Kaper, managing director of Dutch rail operator NS International, which operates high-speed links to Brussels, Frankfurt, Paris and other destinations, said: “The preparations for the direct connection between Amsterdam and London with Eurostar and NS are progressing well.

“All partners are working hard on this. Today is special because the start of services with the new train to Brussels brings the ‘Amsterdam Route’ closer.”

The e320 has been on the London-Paris route since 2015. Eurostar said it was “proving very popular with customers”, with “20 per cent more capacity ... chic interior, wi-fi and on-board entertainment streamed to customers’ personal devices”.

However, when the trains were launched the Standard reported how some passengers complained about “uncomfortable” seats, “too bright” lighting and a “wobbly” swaying motion.