Wasn’t the thinking behind the split that the sleeper gets somewhat neglected being a small part of a large franchise, whereas being its own franchise it has dedicated management? What would prevent that happening again if it was integrated? Is there any indication Transport Scotland have changed their minds about this?
That depends on what you mean by 'neglected'.
Under ScotRail, the only neglect in the service was that Mk2s and Mk3s were allowed to be thrashed up and down the Highlands and WCML as long as they were.
But the main advantage was that there were no dedicated crews, and so Aberdeen/Inverness/Perth/Dundee/Edinburgh/Glasgow Central/Dalmuir/Fort William all signed them - as well as the fact that there were more berths per coach which, during busier seasons, allowed for every last penny to be extracted by discounted rates (re 'bargain berths').
I am skeptical as to whether reducing the number of berths in exchange for better facilities (ie showers and double beds) at an increased price would have improved the uptake financially, but perhaps with the way some services were going (such as Aberdeen's decline in demand and Fort William's tourist market increase) it was a gamble worth taking to revolutionise the service.
Pre-Serco money was always needing pumped into the service to keep it going, including multi million quid stock and marketing enhancements to keep the service attractive. But with the ScotRail franchise it was part of spanning 2005-2015, any investment that was later realised to be needed on top of that would need to have needed to be fully funded by the Scottish Government and not by the franchisee. Hence why casting it off to its own franchise with its own dedicated contract and 15 year strategic plan allows, in theory, the private sector to take a brunt of the costs in the enhancements needed without the ScotRail franchise - which was being tendered for 2015 - asking too much of bidders so as to reduce the benefit to daytime services.
Whether in the long term, as the dust settles post Mk5s, the service stands a better chance under private ownership - I really doubt it.
That's as far as my thinking takes me. Although one thing is for certain, and it is that there is a consensus amongst front line staff that the service worked far better as part of ScotRail - regardless as to how tatty things got towards 2015.