Fare setting on shared routes

[greatkingrat]

Imagine a route from A to B where TOC X runs 2/3 of the trains and TOC Y runs 1/3 of the trains. TOC X owns the flow from A to B. If TOC X wanted to reduce the fare from A to B, would they need the agreement of TOC Y (because TOC Y would lose income)?

 

[Mojo]

Shortly after First started the Greater Western franchise, they introduced walk-up FGW Only fares in South Wales. Shortly before the deadline for changes, Arriva Trains Wales (which sets the Any Permitted fares) slashed the cost of Any Permitted tickets to just less than the FGW Only fare, rendering the FGW Only fares useless.

Without knowing the politics involved, but given this happened, I'd guess the answer to your question is no.

 

[yorkie]

If a TOC wants to control a particular flow, they can submit a request (to the ATOC Schemes Committee) to do so. It is rare that this is done (I guess it may involve a lot of 'red tape', but I don't know), but one example is: XC steal fares from Chiltern!

XC then bumped up the fares and introduced additional restrictions. Chiltern put up posters at stations informing customers who they should direct their comments to!

 

[Paul Kelly]

Imagine a route from A to B where TOC X runs 2/3 of the trains and TOC Y runs 1/3 of the trains. TOC X owns the flow from A to B. If TOC X wanted to reduce the fare from A to B, would they need the agreement of TOC Y (because TOC Y would lose income)?

On the contrary - my understanding is that it would be very dubious (possibly illegal) if they did; this would be seen as collusion.

 

[johnnycache]

Here is some stuff from the Ticketing and Settlement Agreement that you may find interesting:

http://www.atoc.org/clientfiles/File/RSPDocuments/TSA V9_5 - Main Agreement (Volume 1).pdf

If you are Lead Operator then all other operators must accept the fares you set

4-20 (2)
"Fares Created by a Lead Operator pursuant to sub-Clause (1) above must be honoured by any other Participating Operators which run trains on all or part of the relevant Flow"


The Lead Operator:

4-21
(a) must act in an even-handed manner between the Participating Operators which run trains on the relevant Flow; and
(b) must not engage in disruptive or anti-competitive or other pricing policies which restrict, or might reasonably be expected to restrict, passengers’ freedom to choose between the services of the Operators which run trains on the relevant Flow.