UK railways prove less profitable than private operators once hoped
Collapse of East Coast franchise prompts questions about position of other firms
The East Coast has once again proved that the railway from Scotland to London is not lined with gold for private operators. This week’s collapse of the Virgin Trains East Coast (Vtec) franchise marks the third time in a little more than a decade that a train company operating on that line has failed to meet its contractual obligations. The decision to return the service to the public sector for the time being was made by Chris Grayling, the transport secretary, as a precursor to a new public-private partnership.
Its collapse has been described as a“bailout” of Vtec’s owners, Stagecoach and Virgin, and has been widely criticised.
Source: Guardian Transport