Stagecoach says it has overpaid for East Coast rail contract as profitability plunges
”The London-to-Edinburgh rail line is facing its third crisis of private ownership in 11 years after Stagecoach clashed with the government over the terms of its East Coast franchise. Stagecoach has also admitted that in hindsight it overpaid for the £3.3bn contract, blaming factors including Brexit and terrorism for underperformance that punched an £84m hole in its finances.
The difficulties facing Virgin East Coast, 90% owned by Stagecoach and 10% by Virgin, prompted renewed calls for nationalisation of the railways.”
balanceandreason 28 Jun 2017
A contract is a contract, after which it can be taken back into into Public ownership when the contract expires. It was making a steady profit, which was returned to the taxpayer when in Public ownership. No reason it cannot do this again. Private business is not always the best option, clearly!
”Uh oh! Rail franchises collapsing almost as often as trains are cancelled in #BrokenBritain. The franchising farce has to end and end soon, with a new Act of Parliament terminating privatisation for good and re-establishing the sectors of British Rail. SHARE to remind your friends about the calamity railway!”