NXEA and c2c re-franchsing cancelled...

[Z12XE]

...for now.

Press Release here.

 

[SouthEastern-465]

Read in the RM that Stagecoach was suppose to be taking on the franchise a couple of months back.

 

[Z12XE]

Last summer Stagecoach was interested in buying all of National Express Group, but it fell through.

 

[rail-britain]

This hints towards longer franchises where the franchise also owns the rolling stock

 

[Greenback]

It certainly does, and after all it's what the Tories have been talking about!

 

[WatcherZero]

Ive heard disturbingly the government may actually be thinking of some short term (2-3 year) franchise extensions where it would take 100% of ticket revenue and only pay running fees to operators so as to put off having to cough up extra subsidy or partial contributions for investment for a couple of years until finances recover.

 

[Greenback]

As a short term measure, that wouldn't surprise me either!

 

[Aictos]

It is currently expected that a new competition for the Greater Anglia franchise will be advertised by the end of the year, after the consultation responses have been considered, with the Essex Thameside franchise following in Autumn 2011.

So not cancelled but technically deferred.

 

[dk1]

Arghhh!! Can we never rid ourselves of the dreaded National Express?

 

[A60K]

Arghhh!! Can we never rid ourselves of the dreaded National Express?

While it's difficult to believe, there's always a possibility that the next bunch to take on the routes (c2c especially) may actually be worse

 

[dk1]

While it's difficult to believe, there's always a possibility that the next bunch to take on the routes (c2c especially) may actually be worse

Pour me another & make it a large one

 

[Crossforth]

As much as NX screwed up the EC franchise, they have done well with C2C. Maybe they need to continue with it?

NXEA... well that is a different story

 

[rail-britain]

Ive heard disturbingly the government may actually be thinking of some short term (2-3 year) franchise extensions where it would take 100% of ticket revenue and only pay running fees to operators so as to put off having to cough up extra subsidy or partial contributions for investment for a couple of years until finances recover

That would require negotiation with existing franchise holders, they may all turn round and refuse as the Open Access Operators would not be liable to the same "restriction"

In effect the TOCs would be providing ticket collectors at their own cost
Furthermore, they may all pull ticket collectors and "open the gates", meaning the government received no revenue
The operator would then still receive their running costs
Clearly that would not work either!

 

[WatcherZero]

Yeah its a difficult one to negotiate, my source says IF it happened some might accept the deal while others wouldnt, some franchises even taking 100% fare revenue wouldnt cover the subsidys that had to be paid out. They would essentially be offered a couple of years extension solely as a management rather than franchise operator, revenue protection could be built in as a performance target however.

 

[Ivo]

While it's difficult to believe, there's always a possibility that the next bunch to take on the routes (c2c especially) may actually be worse

Aye. They could go by the name "Arriva" for all we know

(God help us... Arriva buses and trains back home! Where's me sick bucket...)

 

[mikeg]

It's not all bad news... Look at this, it seems the East Coast refranchising will also be delayed.
http://www.google.com/hostednews/ukpress/article/ALeqM5gKH9o3usQolyUZz1XzCxTMtLDSgA

 

[rail-britain]

It's not all bad news... Look at this, it seems the East Coast refranchising will also be delayed

The last paragraph of the DfT Statement already covers that, clearly details about this will be published later
This suggests that changes are to be made to the rolling stock requirements on the East Coast franchise

 

[Z12XE]

NXEA... well that is a different story

Roll back to 2006-2007 as One Railway and they were doing ok.
Cue East Coast and the drain that caused on the finances of the rail division and it all went to hell when the cost cutting and redundancies kicked in.

Then just as it looked as if thing were going to improve due to East Coast no longer being there they were told no extension and it went into closing down mode.