Abellio to return Greater Anglia to DfT?

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ChristopherJ

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Abellio are apparently considering handing back the keys to the GA franchise to the DfT sooner rather than later because the revenue margin of 9% they targeted has dropped to a mere 3%.

Still only rumour but from a very, very reliable source within Greater Anglia.

Oh, and on the same note, one of the prized 379s broke down in front of the MD at Bishops Stortford today. I bet Mr Hackett was hacked off.. :lol: :lol: :lol:
 
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ainsworth74

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We didn't hear this for you yet you posted it on a public forum that is indexed by Google?

Okay then :lol:

Also this isn't entirely surprising (if this turns out to be true rather than a rumour) I seem to recall certain elements of the media (I think Roger Ford) mentioned that the premium payments were going to be very very tough to make, so if their revenue is down then those payments will be getting harder and harder to make.
 

142094

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If it does happen, must be a record for such a short-lived franchise.
 

asylumxl

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If true maybe it's due to the troublesome nature of the GEML plus the disappointment regarding other franchises which they were bidding for....
 

ChristopherJ

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Speaking with my contacts further, Abellio took on the 2 year GA franchise as a 'try before you buy' incentive to see whether it is worth tendering for the subsequent 15 year franchise, they've got their answer and now want out. Revenue is leaking out of the company like grease out of a rash of fried bacon...

Abellio would love to turn round to the DfT and tell them to shove their pathetic 2 year franchise and that because they're doing some well with the likes of the ICEC franchise then why not take over and run the heap o' s**te they landed them with, which in the mean time should be long enough for them to find another mug for the next 15 years...
 

fgwrich

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If true maybe it's due to the troublesome nature of the GEML plus the disappointment regarding other franchises which they were bidding for....

Not that im trying to advocate it, but it almost seems that what the Great Eastern needs is the return of Hopwood / First and Co. Having built up the experiance with GW of turning around a married three stage franchise (London Commuter services + Intercity + Rural semi fast/Branches), it seems more of a Franchise id like to see First deal with than West Coast.
 

87015

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Not that im trying to advocate it, but it almost seems that what the Great Eastern needs is the return of Hopwood / First and Co. Having built up the experiance with GW of turning around a married three stage franchise (London Commuter services + Intercity + Rural semi fast/Branches), it seems more of a Franchise id like to see First deal with than West Coast.
Even though it was the First bid which set up the "broken" Great Western franchise is the first place? All the things that were "DfT fault" were in their franchise bid, ITT or not...

The First bid for WCML isn't what you'd call conservative, which is exactly the problem in Anglia!!!
 
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Skimble19

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Speaking with my contacts further, Abellio took on the 2 year GA franchise as a 'try before you buy' incentive to see whether it is worth tendering for the subsequent 15 year franchise, they've got their answer and now want out. Revenue is leaking out of the company like grease out of a rash of fried bacon...

Abellio would love to turn round to the DfT and tell them to shove their pathetic 2 year franchise and that because they're doing some well with the likes of the ICEC franchise then why not take over and run the heap o' s**te they landed them with, which in the mean time should be long enough for them to find another mug for the next 15 years...
I would be interested to see DOR have a go at East Anglia, if anything just to put some standardisation in there!!
 

David10

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Abellio's have committed to paying a premium of £418m, vs £359m from Stagecoach and £347m from Go-Ahead, so would appear they did overbid.
 

HH

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Complete bollox. IMNSHO.

Well the handing back the keys part. Revenue is certainly down the pan.
 

ANorthernGuard

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Personally I can't see that happening Abellio are trying to keep a foot firmy wedged in the UK Rail industry, They (may) lose Northern in 20 months or so and looks like they got nowhere with the WCML bid. I would expect them to tough it out.
 

SprinterMan

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Oh dear :( Looks like withdrawing the 317/7s (grrrr) didn't help then.
I really hope service on the GEML improves, but I can't say I'm particularly fussed about the operator anymore. Not NX though, anyone but them. Anyone. Even Connex :P
Adam :D
 

jonb

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It appears their not too bothered about collecting any potential revenue, for the best part of the last two weeks the barriers & gateline have been open at Shenfield throughout the day and night.
 

tbtc

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the revenue margin of 9% they targeted has dropped to a mere 3%

Revenue is leaking out of the company like grease out of a rash of fried bacon...

So revenue is leaking away, and they are still making a profit?

Bearing in mind that 3% is a fairly "typical" amount of profit for TOCs?

And you are telling us that they were planning for a 9% profit, despite paying over £50m more premium than Stagecoach planned to?

Not convinced, sorry. Wait for the Olympics to get over so they can get on with the "bread and butter".
 

F Great Eastern

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It appears their not too bothered about collecting any potential revenue, for the best part of the last two weeks the barriers & gateline have been open at Shenfield throughout the day and night.

Was like that at Cambridge last week as well.
 

87015

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A bit of googling suggest the 3% peddled by ATOC is a bit on the conservative side;

Northern £32m profit from £615m revenue, 5.2% margin and not as penniless as they claim to be :roll:

Virgin £39.9 on £753m revenue, 5.2%

NX Rail division £16.1 on £335.1m, 4.8%

First Rail division £148.8m on £2.3bn, 6.4%

A fraction of that money could do wondrous things for the industry...
 

tbtc

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A bit of googling suggest the 3% peddled by ATOC is a bit on the conservative side;

Northern £32m profit from £615m revenue, 5.2% margin and not as penniless as they claim to be :roll:

Virgin £39.9 on £753m revenue, 5.2%

NX Rail division £16.1 on £335.1m, 4.8%

First Rail division £148.8m on £2.3bn, 6.4%

A fraction of that money could do wondrous things for the industry...

500 meters of (unelectrified) track at Todmorden will cost up to £8,000,000. Just to put things into perspective.
 

Monty

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A bit of googling suggest the 3% peddled by ATOC is a bit on the conservative side;

Northern £32m profit from £615m revenue, 5.2% margin and not as penniless as they claim to be :roll:

Virgin £39.9 on £753m revenue, 5.2%

NX Rail division £16.1 on £335.1m, 4.8%

First Rail division £148.8m on £2.3bn, 6.4%

A fraction of that money could do wondrous things for the industry...


It is peanuts though when you consider that 'profit' isn't going to one man in an office. Investors want a return from their investment, so speaking broadly thats not a lot of money when compared to the likes of BAE Systems made £1.5billion in profit last year.
 

Clip

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It is peanuts though when you consider that 'profit' isn't going to one man in an office. Investors want a return from their investment, so speaking broadly thats not a lot of money when compared to the likes of BAE Systems made £1.5billion in profit last year.

Womder how many investors in the railways are pension groups looking to get a good return to then give to their members. And probably a few enthusiats* on here who maoan about fat cats creaming off the profits not realising that its their pension funds that are investing their money and looking for these profits.


*I am unsure if the Railway pension scheme is allowed to invest in the railway so cancel any rail workers in that statement
 

Skimble19

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I remember watching a documentary (on the BBC I think) where WAGN's own staff admitted that they thought it stood for..........

"We are going nowhere!"

I remember watching that! :lol: T'was Panorama, I believe..
 

DynamicSpirit

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A fraction of that money could do wondrous things for the industry...

Are you saying the profits should simply be confiscated to reinvest? And if so wouldn't that just destroy any company's incentive to try to do a good job of running trains, and so do more harm than good? 5% is not after all an excessive return to make on an investment. (After all, before the banking crisis and subsequent recession set in it and wiped out interest rates it wouldn't have been that uncommon to be able to make 3 or 4% just by putting your savings in a high interest fixed term savings account).
 

Tiny Tim

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Womder how many investors in the railways are pension groups looking to get a good return to then give to their members. And probably a few enthusiats* on here who maoan about fat cats creaming off the profits not realising that its their pension funds that are investing their money and looking for these profits.

*I am unsure if the Railway pension scheme is allowed to invest in the railway so cancel any rail workers in that statement

Investors may also include drug barons and arms dealers. Should we be sympathetic to these groups as well? Shareholding is a risk that can be taken by anybody with the money to do so.
 

Clip

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Investors may also include drug barons and arms dealers. Should we be sympathetic to these groups as well? Shareholding is a risk that can be taken by anybody with the money to do so.

BAE systems and Glaxo-Smithkline are both of these things who can invest where they see fit.

The illegal ones i should imagine are only doing so to legitimise or launder their money but not many I should imagine would invest in the railways for meagre yearly dividends when punting more gear and arms would recoup them a far more generous return on their initial investment.

I wouldnt know though as I am neither.
 
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