Thursday, 3 January 2013

Chiltern Railways - this is where the fare money goes...

Hats off to Thomas Ableman, Commercial Director of +Chiltern Railways , for being prepared to go on Sky yesterday to explain about the January 2013 fare increases.

According to Thomas, for every £1 that Chiltern takes in the fare box, the following expenditure is incurred:

30p to Network Rail
30p on staff costs
20p on the rolling stock - 12p for leasing and 8p for fuel
16p on other operational costs
4p to the Government in premium payments - Chiltern does not get a direct subsidy

Therefore, Thomas argues, Chiltern does not make a profit and so the regulated fare increases are necessary. He says that Chiltern is on track to make a profit in 2014/2015 when the line to Oxford is open...

1 comment:

  1. Much simpler reason:
    The government has told all franchises fares must go up every year, and a rate above inflation. The government could freeze (most) fares, or make them be doubled.