From the ArcaMax Publishing, UK News Newsletter:
http://www.arcamax.com/news/uknews/s-574072-942304
LONDON (UPI) -- British Transport Secretary Andrew Adonis said the
government will nationalize the Edinburgh to London rail line, the
country's busiest intercity route.
The government will take over the East Coast Main Line for "about a
year," Adonis said, calling the move "highly regrettable."
"The government is not prepared to renegotiate rail franchises," he
said. "I am simply not prepared to bailout companies that are unable
to fulfill their commitments."
Talks with National Express to extend the franchise broke down last
week, The Times of London reported Wednesday.
The company signed up for the franchise assuming revenue growth of 10
percent a year, but the recession has dropped revenue growth on the
line that carries 17 million passengers a year to 1 percent in the
past six months, The Times said.
The default has provoked a bitter exchange between the company and the
Transportation Department.
Adonis said National Express Chief Executive Officer Richard Bowker
was leaving due to financial problems at the company. But Chief
Operating Officer Ray O'Toole denied the company was in default "on
any of our commitments."
"There are no financial problems at group level and Richard Bowker has
not left because of financial difficulties," O'Toole said.