How do rail franchises work?
Rail franchising is where contracts to operate passenger railway services in Great Britain are awarded to private train operating companies for a limited period of time following a detailed bidding and competition process.
Do rail franchises make money?
How much profit do train companies make? On average train operating companies make two percent of profit, however not all train operators make a profit, and they only make a profit if they run their franchises successfully, which means attracting more passengers to travel and by offering a good service.
What will replace rail franchises?
Passenger service contracts
Passenger service contracts will replace rail passenger franchising.
Are rail franchises ending?
UK Ministers have ended rail franchising after 24 years as the first step in bringing Britain’s fragmented network back together. From 21 September 2020, franchising is replaced with more demanding Emergency Recovery Management Agreements (ERMAs).
Who owns UK train franchises?
Current franchises
| Franchise | TOC | Owner |
|---|---|---|
| South Eastern | Southeastern | Department for Transport |
| South Western | South Western Railway | FirstGroup (70%) MTR Corporation (30%) |
| Thameslink, Southern & Great Northern | Govia Thameslink Railway | Govia |
| TransPennine Express | TransPennine Express | FirstGroup |
What is the difference between concession and franchise?
As nouns the difference between franchise and concession is that franchise is a right or privilege officially granted to a person, a group of people, or a company by a government while concession is the act of conceding, especially that of defeat.
How do train lines make money?
An increase in regulated rail fares is determined based on the retail price index. This covers approximately half of all tickets. The remaining half is unregulated. Money from operators is paid to delayed passengers, assuming they make a claim.
What will happen to train companies?
Great British Railways will serve instead as coordinator, issuing management concession contracts to private train operators, with incentives to improve punctuality and increase passenger numbers. Arriva’s contract to run the Northern rail franchise was similarly ended, and the line re-nationalised, in 2020.
Who owns UK rail companies?
HM Government
Network Rail
| Type | Government-owned company/Non-departmental public body (incorporated as a private company limited by guarantee without share capital) |
|---|---|
| Revenue | £6.6 billion (2019) |
| Owner | HM Government (Department for Transport) |
| Number of employees | 42,099 (2020) |
| Website |
Who is the largest train operator in UK?
The GTR network
The GTR network includes the new Thameslink and Great Northern lines, as well as Southern and Gatwick Express. It forms the UK’s biggest ever rail franchise; 22% of all passenger train services.
