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Bombast and the bailout

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Christmas in November

Christmas came early for Stagecoach and Virgin on 29 November, when the Department for Transport announced secretary of state Chris Grayling’s ‘new strategic vision‘ for railways.

gov.uk, strategic vision for rail, 29 Nov 2017

The announcement was bundled with a government bailout for (Stagecoach) Virgin Trains East Coast, the operator of nearly all long distance services out of Kings Cross since 2015.

Investment bank Liberum believes the risk of Stagecoach defaulting on the franchise has been ‘removed’ – perhaps not surprisingly, given that inconvenient back-loaded payment obligations which won VTEC the franchise competition seem to have been ‘disappeared’. In GB rail, ‘competition for the market’ seems to amount to which bidder has the rosiest spectacles, or the best cock and bull story.

East Coast bailout story in the Guardian, 29 Nov 2017

ITV News at 6.30 pm did not mention the bailout, and mainstream media coverage was distracted by the guff about ‘reversing Beeching’.

Daily Express 'reversing Beeching' twaddle, 29 November 2017

Stagecoach East Coast bailout story, Financial Times 29 Nov 2017

Written by beleben

November 30, 2017 at 12:28 pm

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