Govia Thameslink Railway operator strikes deal with government following rail chaos
Go Ahead Group has struck a deal with the Department for Transport to allow it to hang on to the troubled Govia Thameslink Railway franchise.
Go Ahead has agreed to introduce a profit sharing mechanism with the DfT for the remainder of the franchise which runs until 2021.
As a result, the margin over the franchise term is now expected to be between 0.75 to 1 per cent (previously 0.75 to 1.5 per cent), with no profit expected in the current financial year.
It said its full year expectations for the current financial year remain unchanged.
It has also agreed to provide £15m of funding this year for “passenger enhancements”
Go Ahead said: “This agreement resolves matters relating to the industry-wide failures concerning the introduction of the May timetable, as well as bringing to a close discussions around other outstanding contractual variations.”
Its chief executive David Brown, 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.
Since the introduction of the interim timetable in July, performance has greatly improved, and now includes over 200 new services for customers, with further additional services to be introduced this month.
“This agreement will deliver additional benefits to passengers to be agreed in consultation with our customers."