Rail | Issue 803
SOUTHERN STRIKE CRISIS DEEPENS
Go-AheAd Group has halved its predicted margins for its Govia Thameslink Railway (GTR) franchise to 1.5%, in light of recent industrial action by guards and continued disruption to services. A joint venture of Go-Ahead Group and Keolis operates GTR on a seven-year management contract (see panel). In a pre-close trading statement issued on June 14, the group’s chief executive David Brown said that 2015-16 “will represent another strong year of profit growth” across its bus and rail operations. However, he said that “the additional resources being invested in GTR to support service delivery are depressing margins on that contract in the current year, and will also impact on next year’s margins”.
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