Does Avanti actually run to a profit?

[Lucyisthebest]

Does Avanti West Coast actually run to and make a profit?

 

[ThameslinkUser]

Not currently

 

[yorkie]

Does Avanti West Coast actually run to and make a profit?

I'm not sure what you mean.

Are you asking if FirstGroup make a profit from running the franchise? Or are you asking if, overall, the franchise operates without subsidy?

And are you asking about the current state of affairs (with mostly empty trains, especially at "peak" times) or under the circumstances prior to March?

 

[LNW-GW Joint]

Virgin Trains (West Coast) ran at a steady profit in recent years (paying its shareholders Virgin Rail Group and Stagecoach about 5% margin).
Avanti would start at much the same level last December, but they only had 3 months of their franchise before Covid hit.
Margin is now 2% of an agreed cost base under the initial EMA period to September; who knows what will come next.
Avanti also has extra costs with rebranding, refitting the current fleet and commissioning its 23 new trains coming in 2022-23.

And welcome to the forum!

 

[lincolnshire]

At the present time you can,t even compare it to when its was Virgin as matters have changed in the world for everyone and are never going to be the same again. Just look at the cruise industry to see how they have changed since March 2020.
It might mean that all the Train Operating Companies need to have there franchise agreements changed to suit the changed situation we all find ourselves in now.

 

[Clarence Yard]

Pre-Covid, the recent franchise awards have much smaller margins than 5%. That's why some groups wouldn't bid for UK Rail franchises.

It's all a bit irrelevant now as the Government has effectively taken over all the franchises and are just paying out management fees to the owning groups.

Franchises, as we know them, will not be returning.