£35M.. THEN ANOTHER ROUTE ABANDONED
A TRANSPORT giant took £35million out of one rail franchise just months before abandoning another.
The massive dividend was paid from the East Midlands Trains franchise to owners Stagecoach, company accounts reveal.
It represented a £20million increase on the previous year’s payment and came less than a year before the company abandoned the London-to-edinburgh East Coast Main Line franchise last year. Labour last night slammed the move, which came as passengers protested last week after an average 3.2 per cent increase in fares.
And yesterday it emerged hundreds of station car parks will also raise prices.
Charges at Southern, Great Northern, Thameslink and Gatwick Express services will go up by 3.2 per cent from tomorrow.
LNER passengers also face higher peaktime parking prices from tomorrow.
Labour’s Shadow Transport Minister Andy Mcdonald said: “These dividend payments to shareholders are a major kick in the teeth for passengers who have just been forced to suck up another unfair rise in rail fares.
“Profit has been privatised, whilst lossmaking franchises are just handed back to the Government, no questions asked.”
Last February, Transport Secretary Chris Grayling said Stagecoach, which operated the line in conjunction with Virgin Trains, was incurring “significant losses” and would not be able to continue the franchise.
It was taken into public control in May.