I used to think that the north east area was downtrodden compared to the other regions of the Reggie Railways North East and North West areas, but when you consider the bigger picture, it's no worse off than any of the other areas: Half of Heatons' 142 diagrams are actually in Yorkshire, primarily radiating from Sheffield. And at least peak time trains out of Newcastle aren't generally as rammed as those out of Leeds, Manchester and Liverpool.
There's always a worry that with the North East being a group of satellite communities out on a limb removed from the focus of Northern operations that the area will simply be forgotten about, but the North East has a mix of 156s and the most comfortable of the 142s (Okay, I know that's not saying much). It would be nice if Nexus were to show more active interest in the local rail services instead of playing with its' Metro all the time (Some three car trains would be nice: Once Pacer replacement gets rolling then 156s strengthened with 153s and the twenty three 144s shifting to Heaton would be nice, and fairly realistic), but overall things could be worse.
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Well Northern cover Cheshire, Cumbria and bits of the North Midlands that you haven't mentioned and really you should split up Northern more than that. East Yorkshire is usually Pacer and 150 free, meaning they have the best diesel stock overall. However, 333s in West Yorkshire are much newer than 158s but Pacers exist there, while South Yorkshire gets the Pacers but gets very few electric trains which are mainly 321s not 333s.
Also, having the nicest trains doesn't mean everyone gets a seat so there can still be complaints.
Splitting Northern into the three areas of "Lancashire", "Yorkshire" and "North East" seems completely rational to me, as Northern is built principally on the old Regional Railways North West and North East areas which were very much separate entities, and the north east is a satellite to the rest of Northerns' operations. If you split it down any more, you start to get down to the level of comparison on an individual route by route basis, which only goes to prove that all the areas have fairly major imbalances of the rough and the smooth.
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Any option that gets the north east and Cumbria services some real love and attention wold get my vote. Northern seem to be almost exclusively focused on their PTE services (and Tyne and Wear don't really cout in this regard since there's only the one route). I think that a better arrangement would be to put the Manchester/West Yorks services into one frachise and to split the Cumbria, north east and Lincs/Notts services between the east coast, cross-country and TPE franchises. In a strange way I think they would get more attention as the routes would be feeders for these companies wider routes and so there would be an incentive to invest in them..
So a "Lancashire & Yorkshire" TOC and a "North Eastern Railway" TOC: Goes to show that the old ways of doing things were the best...
There's definitely plenty of merit in creating a "Super PTE" based franchise stretching across the four centrally located PTE areas in the Northern area, heck, it would also neatly accomodate the Transpennine franchise. However I am then concerned that the areas that were "hived off", so the North East and the Cumbrian services for starters, would be subject to little attention and investment as part of other larger franchises with bigger concerns than the little local trains of the north, while the "Lancashire & Yorkshire" Super PTE operator would be noisily and influentially braying for new rolling stock and getting all the attention.