Telegrammed by Leo Pink
With the world waiting agog to hear how, with one bound, Richard Bowker and NatEx are free of the East Coast franchise, here is a simple solution which leaves everyone unhappy but alive.
In exchange for NatEx paying a chunky sum up front, DafT brings forward cap & collar revenue support for NXEC to the start of the current financial year. This puts NXEC on the same basis as the other inter-city operators FGW and Virgin who have been on revenue support since last year.
In addition to the chunky sum up front NatEx also gives all income above the franchise bid revenue line to DafT when the economy recovers.
So DafT avoids the pain of a franchise collapsing just before the election. The cheeky sum up front - say £50m - covers most of the support in year one and NatEx shows that it is committed to the UK rail industry by covering its share of the lost revenue.
Will common sense prevail? By tomorrow we'll know.
