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UK rail fares up 6+% - Ridiculous or fair?


jayseven

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Indeed! I am interested in knowing what this 'flaw'/'mistake' was. I have no idea what sort of context to expect it to be in...

 

From what I understand it came down to the amount First had agreed to put forward as a security bond (an amount they would have to pay if they failed to provide for the whole 15 year contract). First told the DfT that they would pay £200m (which Virgin thought was too low from the outset and suggested something more like £5-600m) but somehow that just rolled on through - presumably the DfT jumped to the conclusion that First's calculations were right and didn't think to double check. From a quick google I think the math fell apart on the inflation side of things. Edit: and passenger number estimations.

 

Worst part? Mail reckons this'll cost us £100m.

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