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#1
1st July 2009, 08:27
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East Coast Franchise to be Nationalised
The BBC is reporting that National Express is to give up the East Coast franchise by the end of the year, having failed to renegotiate the franchise with the department for Transport.
It is likely that the DfT will take over (nationalise) the franchise itself. Chief Executive Richard Bowker is reported to have resigned. Congratulations to the DfT for at last doing the right thing. Companies that secure franchises by seriously underestimating the commercial position and undercutting other more realistic bidders must not be allowed to hold the DfT to ransom. It was a disgrace that GNER was ousted by NE in the first place.
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reflector 
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#2
1st July 2009, 08:38
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I agree but it is another bail out as the franchise was heavily in debt so the government(tax payer) will take on these debts?
I hope the ECML remains in public control.
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Either he's dead or my watch has stopped. Groucho Marx
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#3
1st July 2009, 08:44
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I gather Lord Adonis is saying that the intention is to re-let the franchise in about a years time so that the nationalisation is likely to be only temporary.
He didn't rule out the other two National Express franchises being similarly taken over.
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reflector
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