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Great Western Coffee Shop > All across the Great Western territory > Smoke and Mirrors > Franchising financing
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Author Topic: Franchising financing  (Read 18826 times)
welshman
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« Reply #15 on: January 22, 2009, 19:26:22 »
It's not all about economics.  The last set of figures I saw showed that about half ATW▸ (Arriva Trains Wales (former Train Operating Company))'s income is subsidy from WAG» (Welsh Assembly Government - about) and the rest comes from fares.  A considerable proportion of the services are run as a "social railway" since there would otherwise be no public transport at all.  Or at least no coherent public transport.

Take the Heart of Wales line for example.  5 trains a day from Swansea to Shrewsbury.  Essential but not economic.  Or the Cambrian Coast line, which is effectively the school bus.

I have no idea who regularly travels from Maesteg to Cheltenham.
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John R
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« Reply #16 on: January 22, 2009, 21:38:57 »
I doubt anyone does, but it must be operationally more efficient to run a through service than have to terminate trains from both directions at a station which is very congested.



 
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inspector_blakey
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« Reply #17 on: January 22, 2009, 23:14:46 »
I don't suppose there's a huge number of takers for the through journey on the two-hourly Manchester Picc - Milford Haven service either but there are so many significant traffic flows en route that this train makes perfect sense.
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willc
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« Reply #18 on: January 29, 2009, 00:45:26 »
Looks like National Express could be head of the queue to hand back the keys to the Government.

http://www.guardian.co.uk/business/2009/jan/28/national-express-rail-contract
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Btline
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« Reply #19 on: February 02, 2009, 16:05:07 »
The only loss would be their website. Sad
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devon_metro
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« Reply #20 on: February 02, 2009, 16:18:13 »
Apart from the fact that National Express had nothing to do with the design of it...
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JayMac
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« Reply #21 on: February 04, 2009, 09:17:06 »
Quote from: willc on January 29, 2009, 00:45:26
Looks like National Express could be head of the queue to hand back the keys to the Government.

http://www.guardian.co.uk/business/2009/jan/28/national-express-rail-contract


Prehaps the drastic cut in their restaurant provision is just the the thin end of the wedge (Only 15 trains per day on NXEC▸ (National Express East Coast) and none on NXEA▸ (National Express East Anglia)). We may see other 'rationalisation' wherever TOCs▸ (Train Operating Company) can get away with it, without upsetting DfT» (Department for Transport - about). Most current franchises were struck during a period of economic growth, with growing passenger numbers. Subsequently TOCs were climbing all over each other to offer DfT the biggest premium. I suspect when the first TOC gets into financial trouble it will go running, teary-eyed, to DfT and Hoon and Co will supinely allow it to alter it's franchise terms.
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"Good news for regular users of Euston Station in London! One day they will die. Then they won't have to go to Euston Station ever again." - David Mitchell
Tim
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« Reply #22 on: February 04, 2009, 11:08:26 »
Quote from: bignosemac on February 04, 2009, 09:17:06
Quote from: willc on January 29, 2009, 00:45:26
Looks like National Express could be head of the queue to hand back the keys to the Government.

http://www.guardian.co.uk/business/2009/jan/28/national-express-rail-contract


Prehaps the drastic cut in their restaurant provision is just the the thin end of the wedge (Only 15 trains per day on NXEC▸ (National Express East Coast) and none on NXEA▸ (National Express East Anglia)). We may see other 'rationalisation' wherever TOCs▸ (Train Operating Company) can get away with it, without upsetting DfT» (Department for Transport - about). Most current franchises were struck during a period of economic growth, with growing passenger numbers. Subsequently TOCs were climbing all over each other to offer DfT the biggest premium. I suspect when the first TOC gets into financial trouble it will go running, teary-eyed, to DfT and Hoon and Co will supinely allow it to alter it's franchise terms.

Has already happened.  The franchise said at least 87 restaurants (GNER▸ (Great North Eastern Railways) has 90+)
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super tm
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« Reply #23 on: February 04, 2009, 11:19:02 »
Quote from: Tim on February 04, 2009, 11:08:26
Quote from: bignosemac on February 04, 2009, 09:17:06
Quote from: willc on January 29, 2009, 00:45:26
Looks like National Express could be head of the queue to hand back the keys to the Government.

http://www.guardian.co.uk/business/2009/jan/28/national-express-rail-contract


Prehaps the drastic cut in their restaurant provision is just the the thin end of the wedge (Only 15 trains per day on NXEC▸ (National Express East Coast) and none on NXEA▸ (National Express East Anglia)). We may see other 'rationalisation' wherever TOCs▸ (Train Operating Company) can get away with it, without upsetting DfT» (Department for Transport - about). Most current franchises were struck during a period of economic growth, with growing passenger numbers. Subsequently TOCs were climbing all over each other to offer DfT the biggest premium. I suspect when the first TOC gets into financial trouble it will go running, teary-eyed, to DfT and Hoon and Co will supinely allow it to alter it's franchise terms.

Has already happened.  The franchise said at least 87 restaurants (GNER▸ (Great North Eastern Railways) has 90+)

I think the 87 restaurants quote is correct in that when it was announced it said that there would be 87 restaurants a day. However it turns out that this was NOT actually a franchise commitment leaving the option for NXEC to reduce them at any time in the future as they have done so.

As always the devil is in the detail.
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super tm
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« Reply #24 on: February 04, 2009, 11:49:12 »
And here is the specification on the DaFT» (Department for Transport - critical sounding abbreviation I discourage - about) website:-

Catering
It will be for bidders to propose an appropriate level of catering provision for passenger services. Bidders will be made aware of stakeholder preferences.


So basically it can be anything they like !!!
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Btline
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« Reply #25 on: February 08, 2009, 17:01:31 »
Quote from: devon_metro on February 02, 2009, 16:18:13
Apart from the fact that National Express had nothing to do with the design of it...

Whoever designed it; it'll be lost (unless First Group/Chiltern/Govia buy it).
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Tim
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« Reply #26 on: February 17, 2009, 14:24:19 »
thanks for putting me right.  The devil is always in the detail
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