Concerns mounting over future and viability of open access services
THE future of open access train services in the UK remains uncertain as both Hull Trains and Grand Central faced up to the implications of Dfr requirements for passenger safety after services were stepped up from May 18.
Hull Trains suspended all operations on March 30 and
Grand Central on April 4, both firms furloughing most of their staff, but the Government is now asking employers to"start sharing" the cost ofthe scheme from August.
If staff return to work on even a part-time basis, sharing the cost will prove difficult until both companies are earning enough money to cover operating costs.
Passenger numbers are expected to be restricted to around 20% of normal capacity, with significant implications for both businesses, which rely on high seat occupancy to make their operations viable.
One industry source has asked "will they be able to return"?, while another reflected that open access is very much like hospitality, where there are overheads to cover, and with social distancing, an operator needs to weigh up whether it can generate sufficient income, through tickets sales, to cover those overheads.
When Hull Trains suspended its operations managing director (MD) Louise Cheeseman explained that the company had not been offered additional financial support from the Government, which had been provided to franchised rail operators.
She added they had "explored every avenue to try and keep trains running, but sadly it is not currently financially viable''.
Grand Central MD Richard McClean said on May 20 its services would extend the suspension of services until the end ofJune, monitoring passenger demand elsewhere on the rail network. Both operators have stated they will return.
MD of First Group's rail division Steve Montgomery said: "Our commitment to Hull Trains and the entire East Yorkshire and Humber community is as strong as ever, as evidenced by our recent introduction of a new £60m fleet, and we look forward to restarting the service as soon as we can:'
However, one industry insider suggested to The RM this could only be achieved with short-term support from the Dfr until passenger numbers return to pre-lockdown levels.
They also pointed out many open access routes serve areas of the country which 'lent their vote' to the Government in the last General Election and its response to the situation could be crucial in retaining this support.
Both the RMT, Aslef and TSSA have called on the Government to help the open access companies. Aslef general secretary
Mick Whelan said:"lt's deeply disappointing that Government, which has bailed out the train operating companies in the failed franchise sector, has refused to help open access operators.
"It's also ironic as successive Tory transport secretaries have banged on about creating more competition - with more open access operators - and then discriminates against them!"