With passenger numbers down by as much as 70 % and ticket sales two-thirds lower than last year over the same period, British rail operators are facing serious disruption. To avoid possible, or even probable, bankruptcy, the government is taking emergency measures and proposing that companies temporarily suspend their franchise contract for a period of six months, with the possibility of extension or early cancellation." These agreements will suspend the normal financial mechanisms of franchise agreements, transferring all revenue and cost risks to the government.said Grant Shapps, Secretary of State for Transport, in a press release. Operators will continue to provide daily services for a small pre-agreed management fee. "Indeed, charges will be set at a maximum of 2 % of the franchise cost base before the start of the COVID-19 pandemic, in order to encourage operators to meet reliability and punctuality targets.
The main objective is to keep this sector afloat, both to ensure that it can survive the crisis and to meet the needs of today's global economy. essential journeys for nursing staff, patients and their families, distribution and freight. In response to the fall in passenger numbers, services will be gradually reduced from 23 March. In view of the major timetable changes, ticketed passengers should be allowed to travel on another train at a similar time or date if they still wish to travel. Passengers who have already purchased a ticket in advance will be entitled to a free refund. In addition, service on board trains may be restricted. For example, LNER, the operator of the London-Edinburgh route, closed its First Class Lounges on 19 March and discontinued on-board catering on all its trains.
