I've actually started a business plan for a very small OAO. Not really looked at it for a few months now, but I did and do have support.
What type of operator:
1) Industrial and Provident Society (for the benefit of the community, or co-operative). These are expensive to set up and not so user friendly, but highly democratic and able to raise social investment through a low cost share issue.
2) Community Interest Company limited by guarantee. This involves a modest level of regulation, but is reasonably cheap and easy to set up on a DIY basis.
3) Company limited by guarantee. Very cheap, and suitable for a wide range of purposes - however, this very flexibility means that there is no way of preventing it from doing things you might not want in the future.
Helsby - Hooton shuttle every 30mins. This would use new build class 139 stock. The manufacturer visited the line and confirmed the line was suitable for it to work. I originally had thought of getting a class 121, but considering my target audience, something new and modern seemed more appropriate.
Final response from the manufacturer:
The purpose was to ascertain the suitability of the Parry People Mover, (PPM), concept for providing a regular service on the line.
Summary:-
1) The track quality, part jointed and part continuous weld, is in a condition which would allow a comfortable ride.
2) Track layouts at Ellesmere Port and Helsby would not require any alterations as there are crossovers already in place to accommodate the existing service.
3) There are no conflicts with Merseyrail services which terminate at Ellesmere Port and which only use the down Helsby platform. The third rail ends a few meters beyond the Helsby end of the platform.
4) Some small trackwork would probably be necessary to provide a maintenance and servicing depot. Re-connecting Exchange siding at Helsby may be suitable for this purpose. It should be noted that such a Depot, capable of accommodating the two PPM units which would be required for operating a service, does not require the large expenditure required by heavy rail vehicles.
5) The PPM runs on LPG, (liquid petroleum gas), which needs to be available at the trackside in cylinders.
6) The PPM is lightweight construction, has a hybrid power supply and a patented energy storage system which enables the vehicle to recover kinetic energy when braking and then re-use it to accelerate away from stops, (regenerative braking).
7) Maximum speed 45 mph, 50 passengers, distances up to 10 miles, running cost £1.30 per hour and vehicle cost £340k each.
8) With the exception of the secondary transmission which is being engineered by
Linde Hydraulics, all major components are sourced in the U.K. The complete body assembly, framework cladding, internal trim, wiring harness and the fitting-out of the driver's cab is in the hands of North West Bus & Coach Repairs of Leyland and Blackburn. Clayton Equipment of Burton-on-Trent look after the mainframe and Power Torque Engineering, a Ford specialist, handle the power pack. Other components come from Chard, in Somerset, and Stourbridge, West Midlands.
Merseytravel, NWDA and Quinn Glass all expressed their interest in the project.
My sticking point got to stations- Ince & Elton/ Stanlow & Thornton had been fairly neglected and forgotten stations until my RUG got involved. Network Rail painted over the graffiti, replaced the level crossing and cleaned the track up.
Part of my proposals involved me taking control of these two stations and being the 'operator' instead of Northern. This would have suited Northern as they are not in a good position- sort of outside the general network. Nobody could confirm whether it was possible for an OAO to do so. The DfT basically said it would be a matter for ORR. ORR said they were investigating the proposal, but said they would not be able to answer my specific query and that I should wait for a OAO Starter Pack which was currently being developed.
Nobody says an OAO has to be intercity! This was a very cheap, easy and beneficial project which will more than likely be shelved unless I can find more meaningful support.