UKRailSnooze: National Express Takes Over East Coast Mainline
Aug 17th, 2007, 08:23 AM
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UKRailSnooze: National Express Takes Over East Coast Mainline
Author: PalenQ
Date: 08/17/2007, 12:22 pm
After longtime East Coast Mainline operator GNE abandoned plans to bid to renew their franchise London Kings X to Edinburgh via York and Newcastle becaue the admitted they could no longer afford to run it anymore Arriva, First Group, National Express and Virgin Trains eagerly started the bidding.
Winner - National Express, which will take over from 9 Dec this year until 3/31/15
I wonder if in my first-class coach my 'tea or coffee' cup will still rattle?
But NE is not buying the tracks, just running the trains i guess.
Fares are due to go up, in some case 18% over the contract according to the Gaurdian story (14-8-07)
Date: 08/17/2007, 12:22 pm
After longtime East Coast Mainline operator GNE abandoned plans to bid to renew their franchise London Kings X to Edinburgh via York and Newcastle becaue the admitted they could no longer afford to run it anymore Arriva, First Group, National Express and Virgin Trains eagerly started the bidding.
Winner - National Express, which will take over from 9 Dec this year until 3/31/15
I wonder if in my first-class coach my 'tea or coffee' cup will still rattle?
But NE is not buying the tracks, just running the trains i guess.
Fares are due to go up, in some case 18% over the contract according to the Gaurdian story (14-8-07)
Aug 17th, 2007, 08:39 AM
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I accidently posted this first in the Lounge but meant to here as it's travel related
Author: Ryan
Date: 08/17/2007, 12:28 pm
Sea Containers, the parent of GNER, has never made money on that route. The expectation of what that route would generate in terms of profits never materialized. The current contract was simply uneconomical.
My understanding of the issue of the rebid had to do with whether or not the UK Government was going to be forced to refund part of the original GNER bid.
BTw, this is simply a case of one pocket or the other. Sea Containers is in bankruptcy. They have a UK Pension liability that is underfunded. To the extent the government extracted a pound of flesh on the GNER contract simply meant a contraction of what is available to satisfy the UK Pension claim. (A claim the UK government would need to cover if deficient.)
Author: Ryan
Date: 08/17/2007, 12:28 pm
Sea Containers, the parent of GNER, has never made money on that route. The expectation of what that route would generate in terms of profits never materialized. The current contract was simply uneconomical.
My understanding of the issue of the rebid had to do with whether or not the UK Government was going to be forced to refund part of the original GNER bid.
BTw, this is simply a case of one pocket or the other. Sea Containers is in bankruptcy. They have a UK Pension liability that is underfunded. To the extent the government extracted a pound of flesh on the GNER contract simply meant a contraction of what is available to satisfy the UK Pension claim. (A claim the UK government would need to cover if deficient.)
Aug 17th, 2007, 09:03 AM
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Author: audere_est_facere
Date: 08/17/2007, 12:54 pm
meant a contraction of what is available to satisfy the UK Pension claim. (A claim the UK government would need to cover if deficient.)>>>>>
No it wouldn't. This is a big political issue over here.
Date: 08/17/2007, 12:54 pm
meant a contraction of what is available to satisfy the UK Pension claim. (A claim the UK government would need to cover if deficient.)>>>>>
No it wouldn't. This is a big political issue over here.
Aug 17th, 2007, 09:07 AM
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Author: Ryan
Date: 08/17/2007, 01:03 pm
"The Pension Protection Fund was established to pay compensation to members of eligible defined benefit pension schemes, when there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation."
My understanding is that the UK system changed and the PPF is similar to the US PBGC. In a bankruptcy they would have a priority claim on the amount of the deficiency and if the estate didn't have sufficient assets, the PPF would take on the deficient portion.
My understanding with Sea Containers is the valuation being placed on the estate and the methodology to satisfy the claim.
Date: 08/17/2007, 01:03 pm
"The Pension Protection Fund was established to pay compensation to members of eligible defined benefit pension schemes, when there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation."
My understanding is that the UK system changed and the PPF is similar to the US PBGC. In a bankruptcy they would have a priority claim on the amount of the deficiency and if the estate didn't have sufficient assets, the PPF would take on the deficient portion.
My understanding with Sea Containers is the valuation being placed on the estate and the methodology to satisfy the claim.
Aug 17th, 2007, 11:09 AM
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All that's happened is a game of musical chairs - NE had several train franchises most of which they have lost, they've now picked up one they didn't use to have.
The main problems for GNER were that their owner Sea Containers went bust plus the various security problems really knackered their growth plans
The main problems for GNER were that their owner Sea Containers went bust plus the various security problems really knackered their growth plans
Aug 17th, 2007, 12:29 PM
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Alan, which ones has the National Express Group lost? According to their website, they currently have the franchise for c2c, Central Trains, Gatwick Express, Midland Mainline, one, Silverlink and Stansted Express.
