Southern Rail may need taxpayer support
Train and bus operator Go-Ahead has warned that growth expectations are not matching forecasts made for its Southern rail franchise.
The operator bid for the lucrative rail contract, which provides commuter services between London and the South coast, in 2009. However, under the terms of the deal, Go-Ahead is allowed to claim revenue support from the government from September 2013.
Go-Ahead is not the first transport company to seek revenue support but it will only add pressure to the new Transport Secretary, Patrick McLoughlin.
Chief executive of Go Ahead David Brown has said the 'jury is still out' on whether the company can avoid going to the taxpayer as costs have increased by £52.7 million.
Go Ahead yesterday unveiled a 3.4% dip in pre-tax profits to £94.2m despite arguing strong performance from its bus division.
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