logo-loader
viewGo Ahead Group

Go-Ahead hangs on to GTR franchise but accepts profits cap after year of commuter misery

The Department of Transport said that terminating the franchise would cause further and undue disruption

trains
GTR will keep the franchise until 2021

Go-Ahead Group PLC’s (LON:GOG) GTR subsidiary has avoided being stripped of its rail franchise despite chaos on its network caused by strikes and timetable changes.

The Department of Transport said that terminating the franchise would cause further and undue disruption for passengers, so was not an appropriate course of action.

Instead, GTR has agreed to forego profits this year and will take a cap on what it makes until the franchise expires in 2021.

GTR will also contribute £15mln towards for 'tangible improvements' for passengers across the Thameslink, Southern and Great Northern commuter networks in and around London.

The railway group has already paid towards £15mln in compensation for passengers affected by the disastrous introduction of a new timetable in May.

A transport department  inquiry into this year’s misery on the railways concluded it was caused by a series of mistakes and complex issues.

The DOT added it will continue to monitor closely the performance of GTR and can levy further penalties if it trips up again.

David Brown, Go-Ahead chief executive, said: "We recognise that the industry-wide failures in delivering the May timetable created huge difficulties for our customers, and we are sorry for the poor service they received. “

Go -Ahead, which owns 65% of GTR, said its full year expectations for the current financial year remain unchanged.

 

Quick facts: Go Ahead Group

Price: 2008 GBX

LSE:GOG
Market: LSE
Market Cap: £867 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: New PPA and funding update from Tlou in Botswana

Proactive London linked up with Tlou Energy Limited (LON:TLOU) executives in Botswana for a full 2019/2020 update on how and where the business is going - and the news was upbeat. Tlou is running a huge gas asset in Botswana with 9,300 sq km of acreage and proven gas (CBM) reserves with CEO...

50 minutes ago

2 min read