First West Coast

[DVL418]

RE: First West Coast

(12/08/2012 11:43)mbonwick Wrote:  

(12/08/2012 05:49)wirralbus Wrote:  I think if virgin has lost the franchise then the Government has decided that Virgin has gone as far as it can with the West Coast , i do half expect that this decision is based on them becoming preferred bidders for East Coast and to try and turn that franchise into a household name like the West Coast franchise has become .

Nothing to do with that - its a sealed bid system. Everything to do with First offering more £££ in premium payments.
I've nothing against First as an operator, I have everything against them being awarded on an unrealistic bid.

Indeed, there is a history of succesful bidders including steeply rising premium payments from around the mid-point of a franchise - yet as that point arrives 'renegotiating' them down or away linked to a threat of handing back the keys.

There is now plenty of evidence that franchising over a period of less than 20 years doesn't work for rail where you seperate track from trains - merely ramps up cost to taxpayer/passenger by around 20-30% in favour of operators share price and dividend.