Basically not enough passengers and the railway needs subsidising for another 12 - 18 months. Total bailout could hit £5bn - £6bn and there are worries about ongoing support as passengers probably wont return in the same numbers.
Also says rail executives are worried about the long term future of the industry, and one industry figure said the current government measures were rushed and that the crisis had been worse than anticipated.
In other public transport news the governement are looking to find more money for the bus industry in addition to the £397m they have already been given.
There's no doubt about it, the rail industry is in big trouble. Then again, so is a lot of industry, arguably bigger trouble is some respects, like other mass transit providers such as aviation and buses, as well as pretty much all of the hospitality and leisure sectors.
Despite what some try to say, the rail franchises operate at small margins of 3-5% generally. It should be very clear to everyone that it will take years to recover passenger levels to what they were until mid-March. Changes in working and business habits and people being more hesitant about using trains for leisure trips will impact on revenue by a significant amount. That will be the case even if social distancing measures are able to be relaxed completely by the end of the year which seems unlikely.
The rail industry is in a better position than some because it is relatively easy to operate it through the public purse, as is happening now, and as such it is better protected. However, that doesn't mean that line closures, service cuts and other such measures might be needed (including the cancellation of
HS2▸ , though there has been very little significant talk of that so far). I hope, and expect, Government will have to think longer term and not go down that route, but a return to the franchising 'normal' won't be happening either.
So, to continue as they are, all franchises will need to be re-negotiated and hefty subsidies provided for a long while. Those subsidies should be able to be reduced over time, hopefully quite dramatically, but they will be essential. If not, the whole industry will need to be taken back into public hands, or management contracts will need to be introduced everywhere - those options still need big subsidies, but may well be easier to swallow and easier to implement.
I honestly wouldn't like to guess what condition the industry will be in this time next year, or in five years time. The same goes for the country and wider world.