Tuesday 24 November 2009

No Cross Default - Official... almost

Nothing yet on the DfT website but according to the RMT...

The government have also failed to trigger the cross-default clauses on National Express’s C2C service with that franchise being allowed to run its course until retendering and re-letting in November 2011.

No shit Sherlock.

UPDATE: This from The Archer...

RMT’s comments about c2c are more interesting for what they don’t say than for what they do.

The c2c franchise is due to expire in 2011 so an early termination now wouldn’t see a new franchised operator in place before then anyway, as per the current East Coast re-letting timetable.

RMT don’t however mention NXEA and here the franchise is due to run until at least 2011, with a potential extension to 2014 for good behavior.

Sources suggest that the late change in the handback date of NXEC, from December 09 to November 09, means that NXEA will now fail the good behavior test so DfT can appoint a new franchised operator on this route in 2011 rather than 2014, so a sort of cross default half-way house.

However, as the franchise payments agreed between NXEA and SRA were very back-end loaded, what the lack of extension of the franchise could actually mean is upwards of £200m that NX won’t now have to pay to DfT so I can’t image NX would be too disappointed to lose the extension.