Tuesday 27 October 2020

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::: Transport for London crisis grows as funding deadline looms





The Department for Transport has decided to abandon the franchising system in England.

The franchise on this page ceased to exist on normal commercial terms on 23 March 2020, and was replaced by an Emergency Measures Agreement, which guaranteed an income to operators and removed commercial risk.

From 20 September 2020 until some time in 2022 Emergency Recovery Measures Agreements (ERMAs) replaced the original EMAs, slightly reducing the fixed fees paid to operators but otherwise continuing the protection from commercial risk.

Replacement contracts of a new type may be announced later on.

(In the case of Scottish franchises, the Scottish Government announced on 18 September an extension of its EMAs from 20 September 2020 to January 2021, pending further discussions.)




CrossCountry

A new type of contract including minimal commercial risk for the operator and based on the terms of the Emergency Recovery Measures Agreements issued in September 2020.

The Department for Transport collects the revenue and pays the costs, giving Arriva a management fee which is related to standards of performance.



start date
October 2020
end date
October 2023

owned by
Arriva

service area
Birmingham-Leicester-Cambridge-Stansted Airport; Cardiff-Nottingham; Reading-Birmingham-East Midlands-Newcastle-Edinburgh/Glasgow; South Coast and Reading-Birmingham and Manchester; Penzance/Newquay-Bristol-Birmingham

replaced
CrossCountry








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