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Northern On Verge Of Financial Collapse

Northern On Verge Of Financial Collapse

Published by Karen Liu at 11:38am 9th January 2020.

The train company Northern is on the verge of financial collapse, according to the Transport Secretary Grant Shapps.

He is in Yorkshire to discuss transport issues in the region, including the poor performances from Northern and TransPennine Express.

But he's issued a statement saying that Northern's financial situation means they can only be able to continue for 'a number of months'.

And he's confirmed that he has to make a tough decision about whether to award Northern a short-term contract to continue running services - or whether to bring the service back into public ownership:

"It has now been confirmed to me from the most recent available financial information that the franchise will only be able to continue for a number of months.

The proposal I requested from ARN (Arriva Rail North - which owns Northern) is being evaluated.

Following completion of this process I will consider whether to award ARN a short-term management contract or whether to ask the Department of Transport’s own Operator of Last Resort to step in and deliver passenger services.

Longer-term decisions on the franchise will be made in the light of the recommendations of the Williams Rail Review."

Mr. Shapps has issued a written statement and Filey MP, Kevin Hollinrake, said "TransPennine need to take note as their performance is similarly unacceptable."

 

 

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