DafT Spin re. Chiltern Franchise

[Kingfisher200262]

DfT has today issued a press notice, announcing a seven and a half year extension to Chiltern's twelve and half year franchise, increasing it to 20 years.

How strange, since the copy of the franchise agreement on the DfT web site, which was signed in 2002, clearly states that the franchise will end on December 31st, 2021 (i.e. 20 years).

There is a significant difference between this franchise, which was let under the SRA regime and the more recent franchises, let under the DfT.

The Chiltern franchise is structured such that it's baseline is twenty years, but it will end early if the franchisee doesn't carry out certain specified packages of investment (i.e, in the current case, Evergreen 3).

The newer, DfT franchises are much shorter baseline lengths, with extensions on offer for good performance.

I think it is outrageous that DfT is seeking to gain credit for this "extension". The reality is that the existing franchise agreement, signed under the SRA, gives Chiltern this extension and as long as Chiltern sticks to its side of the deal, DFT CAN NOT TAKE IT AWAY!

Performance of the various franchised TOCs will indicate to forum contributors, which model is more successful!

 

[merlodlliw]

A strange press release indeed, if it was a true extension one wonders if passenger focus were involved, as passenger comment is part of the new TOC applications for a franchise.

Can you direct me to the press release please.


M

 

[devon_metro]

So long as the public buy this, then that's one or two extra votes I suppose!

 

[Crossforth]

Currently they seem to be doing a good job with the franchise so as long as they keep the franchise, it doesn't matter

 

[bengley]

Currently they seem to be doing a good job with the franchise so as long as they keep the franchise, it doesn't matter

They're not actually. Their 165s are falling to bits - every time I go on one there seems to be some abmormal noise coming from an engine.

 

[Pumbaa]

They're not actually. Their 165s are falling to bits - every time I go on one there seems to be some abmormal noise coming from an engine.

Sorry - I forgot that slightly odd sounding engines is a sign of a crap job all around on the franchise.

 

[SWT Driver]

It's not what you know, It's WHO you know that's the important thing in the private sector.

A case of nudge, nudge, wink, wink say no more + the magic handshake... Is accepted in far more places than AmEx.

 

[TDK]

They're not actually. Their 165s are falling to bits - every time I go on one there seems to be some abmormal noise coming from an engine.

You should apply for a job as a fitter

 

[Chafford1]

DfT has today issued a press notice, announcing a seven and a half year extension to Chiltern's twelve and half year franchise, increasing it to 20 years.

How strange, since the copy of the franchise agreement on the DfT web site, which was signed in 2002, clearly states that the franchise will end on December 31st, 2021 (i.e. 20 years).

There is a significant difference between this franchise, which was let under the SRA regime and the more recent franchises, let under the DfT.

The Chiltern franchise is structured such that it's baseline is twenty years, but it will end early if the franchisee doesn't carry out certain specified packages of investment (i.e, in the current case, Evergreen 3).

The newer, DfT franchises are much shorter baseline lengths, with extensions on offer for good performance.

I think it is outrageous that DfT is seeking to gain credit for this "extension". The reality is that the existing franchise agreement, signed under the SRA, gives Chiltern this extension and as long as Chiltern sticks to its side of the deal, DFT CAN NOT TAKE IT AWAY!

Performance of the various franchised TOCs will indicate to forum contributors, which model is more successful!

Semantics :roll:

 

[Kingfisher200262]

A strange press release indeed, if it was a true extension one wonders if passenger focus were involved, as passenger comment is part of the new TOC applications for a franchise.

Can you direct me to the press release please.


M

With pleasure. Here you are.

http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=202&NewsAreaId=2&ReleaseID=410319&SubjectId=36
--- old post above --- --- new post below ---

Semantics :roll:

I don't believe that it is semantics. The fact that Chiltern has a baseline of twenty years based on a pre-agreed investment profile has enabled it to secure the finance that it needed to carry out the investment.

The uncertainty surrounding the shorter franchises, who might get an extension if they're good biys and girls has prevented them getting the finance they need for development.

I'm fairly sure that if Northern had been granted a twenty year franchise, with key milestones for investment in the way Chiltern was, the Pacers would be gone by now and Northern would be moving towards being a one DMU class fleet, improving efficiency AND driving down cost in the process.