There seems to have been some media interest in the idea that there are serious financial issues at Arriva Rail North in recent weeks.
On 1st June The Times published an article that declared that the operator "faces the end of the line" with financial problems hinted at, although the article is behind the paywall so I can't read any more.
Today we have the Yorkshire Post, although be warned it's unclear if they have any sources other than TSSA which for obvious reasons isn't necessarily the most reliable:
https://www.yorkshirepost.co.uk/new...JyWyIanRN42rmftmGuCjKMMWXjwD_l5YjKI1lnX27U9w0
It seems clear to me that the reputation of the company among its customers has taken a serious knocking since the start of the franchise. The exceptional level of disruption created first by strikes and then by the May 2018 timetable change is almost certain to have reduced patronage. It remains to be seen how much of that patronage can be regained now that the service has somewhat recovered from those, and some modest but very welcome improvements were at last been delivered 3 weeks ago.
The truth seems to remain quite hidden for the moment.
On 1st June The Times published an article that declared that the operator "faces the end of the line" with financial problems hinted at, although the article is behind the paywall so I can't read any more.
Today we have the Yorkshire Post, although be warned it's unclear if they have any sources other than TSSA which for obvious reasons isn't necessarily the most reliable:
Northern Rail on brink of collapse says union
The region’s biggest train operator is facing a cash crisis that has put it on the brink of collapse, a union claimed last night.
The Transport Salaried Staffs Association quoted what it said was a “senior rail industry source” which indicated that Northern Rail was “likely to go bust later this year”.
It said it was putting “substantive rumours in the rail industry” about a “serious financial crisis” at Northern into the public domain, in order to give the Government time to act and to ensure that passengers’ interests were protected.
A spokesman for the union told The Yorkshire Post: “Northern is running out of money. It could probably stagger on for another year, but that would raise questions about ongoing repairs, safety and the level of service.”
In January, Northern revealed a fall in annual pre-tax profits from £21m to £12.7m, for which it blamed lower than expected passenger growth caused by “adverse weather conditions” as well as last year’s timetable chaos and the effect of continued strikes by another union, the RMT.
The franchise received nearly £280m of taxpayer subsidies in its first year, a figure that was due to reduce over time as part of a Government commitment to ease the burden on the public purse. However, it emerged earlier this year that it had instead increased by around £11m. Northern said the extra cash was for “changes in services and other policy areas” it had been asked to implement.
https://www.yorkshirepost.co.uk/new...JyWyIanRN42rmftmGuCjKMMWXjwD_l5YjKI1lnX27U9w0
It seems clear to me that the reputation of the company among its customers has taken a serious knocking since the start of the franchise. The exceptional level of disruption created first by strikes and then by the May 2018 timetable change is almost certain to have reduced patronage. It remains to be seen how much of that patronage can be regained now that the service has somewhat recovered from those, and some modest but very welcome improvements were at last been delivered 3 weeks ago.
The truth seems to remain quite hidden for the moment.
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