Jul 10, 2018
Rail franchise model 'is bust' says former Network Rail chief
The UK's rail franchise model is "Bust" and should be reviewed, former Network Rail chief Sir John Armitt has said. Regarding the rail industry, Sir John, who is also chairman of National Express Group, said Network Rail had "Effectively been renationalised" and that rail franchise provision is "Dictated by the government". "But in fact the rail franchise companies, as we've seen, have to take very significant revenue risk, and that's got them into trouble, because the government will always go for the most optimistic forecast of revenue," he said. The UK's rail franchising system has been criticised repeatedly. In May this year, rail services on the East Coast mainline were brought back under government control after the franchise for the network failed again.
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