Re: Rail re-nationalisation
Originally Posted by
Tedc
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I have no confidence that the LNER will now be run profitably. where's the evidence that it can be done?
Nationalised Companies usually fail.
I suspect that large funds may have to be pushed in to keep it going.
As I said before, the passenger satisfaction is not a factor.
The evidence is already there - check out the financial and operating performance of East Coast Trains while it was in public ownership.
From being re-nationalised, when the Government had to step in as Operator of Last Resort, after the failed NXEC franchise in 2009 until the government re-franchised it in 2015, East Coast Trains became very successful - it just didn't make any sense to put it back into private hands.
Compared to all the other franchised train lines, East Coast was paying more money back to the government and receiving much less in subsidy, so it was the most profitable line for the taxpayer.
Ticket sales increased, year on year, fares were cheaper than comparative journeys on other train lines, they achieved greater consistent punctuality and, not surprisingly, this increased passenger satisfaction. Customer satisfaction increased to the highest levels ever achieved on that train line.
It also achieved lots of industry awards, including Best Employer.
This is a train line I've used quite a lot over many years, so can compare the service during its different periods of ownership, and I can vouch for the increased passenger satisfaction for the 5 years it was in public ownership. It became a joy to travel on and their great cheap fare offers and points reward schemes enabled me to travel to London more often than I would otherwise have done. The drop in service and frequent delays since Virgin took the service over was very noticeable.
When the Government announced they were re-franchising it, none of the passengers I talked to could understand why. There was lots of opposition - while it was running so well, why not keep ploughing the profits back into it, instead of handing it to a private company.
The Govt response was that it was always meant to be a temporary measure until they had had got it back on its feet to re-privatise. I can only assume that their decision was based on mis-placed ideology, rather than common sense.
They should have listened to common sense because here we are again in the same situation - another failed franchise and the Government have had to step in again as Operator of Last Resort.