National Express could lose out to its rivals
National Express, the train operator, has shown signs of having alarming money worries if their rivals are sanctioned to enlarge their services along the East Coast Main Line. The company is struggling with their £1.4bn East Coast franchise that links the region with Scotland and London as decided by ministers in 2007.
National Express claims that there is a financial risk to their franchise if the services of their rivals are approved which includes an additional Grand Central train linking Sunderland and London every Monday to Saturday.
Its worry centres centre on whether “open admission” services will get funds from companies, similar to National Express which pays the Government for operating their franchises. Consecutively, this can affect how much money the Department for Transport (DfT) gets. The Director of National Express East Coast, David Franks has shown his concern regarding the supposed “revenue abstraction” within a letter to the Rail Regulation office.
The report arrives as National Express plans to bring out a trading update on Thursday along with speculation that Sir James Crosby, the earlier boss of HBOS, will be the company’s chairman.