Northern (Arriva Rail North)

[knutstransport]

RE: Northern (Arriva Rail North)
It's really pointless trying to compare subsides between different forms of transport. TfGM like to boast that Metrolink fares cover the cost of running the trams so claim that Metrolink is a profitable business. Yet TfGM have had huge grants to cover the setup costs of creating new lines. If Metrolink had to repay those costs through leasing costs and track access charges (like rail companies do) Metrolink would be reporting huge losses. It really boils down to DfT wanting to have a profitable rail infrastructure company and will happily subside train operators to pay huge sums to Network Rail for using the rail infrastructure.

Despite that if First Group's sums add up the current TPE franchise will become a profitable franchise over the next few years and Northern's subsidy will reduce.

Fortunately, a train operator can's just choose to stop running a service people rely on because it's not making them enough money.