Could the corona virus end the franchise system ?

[Edders23]

It has occurred to me that with travel in general having dropped dramatically airlines calling for financial help bus and coach companies struggling and many taxi drivers facing a bleak future if the government may have to step in and take over some or all of the remaining franchises not currently under the operator of last resort.

Whilst I'm sure some will be financially secure most franchise operators have other transport undertakings which are also facing difficulties both here and abroad and may find themselves running out of money to pay wages, leases etc.

Is it a realistic possibility that some or all franchises might have to be taken back over by the government ?

 

[matt_world2004]

Depends on if the government allow them to renegotiate their contracts that the drop in passenger numbers will bring . Together with reduce their fines for performance related issues caused by staff sickness.

 

[Edders23]

and here is the first signs that trouble is coming

https://www.bbc.co.uk/news/business-51896169

Train companies seek bailout as coronavirus hits passenger numbers

The government is in talks with rail bosses to put emergency measures in place to deal with falling passenger numbers after the coronavirus outbreak.

 

[Meole]

Is the BBC reporting talks as taking place untrue then ? BBC speculating rather than reporting but misrepresenting their output ?
We can do without the national broadcaster stoking it up.

 

[GlitterUnicorn]

The whole question seems very alarmist,

We don't know the impact yet, virtually every form of business is affected but there's no reason to think that railways will be as badly affected as the airlines.

 

[GRALISTAIR]

London Underground my struggle more than we think. TOCs will definitely be in trouble

 

[Tio Terry]

Too early to be able to decide what will happen. Lets wait and see how long this problem exists and how serious it is. The easy answer for the government is to keep the current system working for now, changing it at this time with all the other problems going on would divert valuable resources away from the day to day problems. This may well mean some temporary concessions but that will be easier than a wholesale revamp!

 

[AndrewE]

Too early to be able to decide what will happen. Lets wait and see how long this problem exists and how serious it is. The easy answer for the government is to keep the current system working for now, changing it at this time with all the other problems going on would divert valuable resources away from the day to day problems. This may well mean some temporary concessions but that will be easier than a wholesale revamp!

The problem is that franchises are businesses, theoretically with "shareholders," and no (or 50%) income is not acceptable in their business plans.
Which is why I think it is obvious that railways (being a fundamental part of our infrastructure) need to be isolated from such worries and should effectively be under "state control." That way they can do whatever is needed without all the complications of "Who pays?"
I know that the DfT's micro-management has been catastrophic, with political dogma over-riding railway knowledge and common sense. However an arm's length railway organisation managing the network (call it BR if you want) - yet able to renegotiate their financial settlement after they have obeyed government and adapted to emerging needs - has got to be more rational than the current dogs' breakfast of contracts looking for compensation.
The only winners now are the lawyers, which is a net loss to the rest of us! How long (months, years?) do you want to persist with the current financial plug-hole before doing something to stem the waste of public and ticket-holders money?