Today, Friday 13th November 2009, a government-owned company takes over the running of the East Coast Main Line from National Express.
It is reported that National Express has been unable to earn sufficient revenue to enable it to pay its franchise rental. It obtained the franchise when GNER encountered similar problems.
The line has potential to be profitable in normal circumstances, but events seem to show that both companies overbid in the franchise auctions. GNER encountered unanticipated problems when traffic was hit by terrorist incidents in London and by severe problems with the infrastructure which led to frequent weekend line closures. National Express has been seriously affected by the recession, which has caused it to fail to achieve expected revenue.
According to Radio York, East Coast will abandon plans for ticket barriers at York Station, and will stop charging for seat reservations w.e.f. January. It will, however, implement the January fare increases already announced by National Express.
It is anticipated that the franchise will revert to commercial ownership in two years' time.
Ian
It is reported that National Express has been unable to earn sufficient revenue to enable it to pay its franchise rental. It obtained the franchise when GNER encountered similar problems.
The line has potential to be profitable in normal circumstances, but events seem to show that both companies overbid in the franchise auctions. GNER encountered unanticipated problems when traffic was hit by terrorist incidents in London and by severe problems with the infrastructure which led to frequent weekend line closures. National Express has been seriously affected by the recession, which has caused it to fail to achieve expected revenue.
According to Radio York, East Coast will abandon plans for ticket barriers at York Station, and will stop charging for seat reservations w.e.f. January. It will, however, implement the January fare increases already announced by National Express.
It is anticipated that the franchise will revert to commercial ownership in two years' time.
Ian
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