East Coast rail owners Stagecoach says route will fast track profitsComments Off on East Coast rail owners Stagecoach says route will fast track profits
After more than five years in the public sector, the East Coast began to be run jointly by Virgin and Stagecoach from Sunday in a move that unions condemned and shadow transport secretary Michael Dugher called “a hammer blow for passengers, taxpayers and employees alike”.
While it was run by the Department for Transport, the East Coast line paid over £1 billion to the Treasury and enjoyed record passenger satisfaction.
Now Stagecoach, which has a 90% stake in the route, forecasts the East Coast will “significantly enhance the profitability of the UK Rail Division in the year ending 30 April 2016 and beyond”.
It’s giving its trains a deep clean and new carpets, and adding warm food in first class to lure more passengers onto Britain’s second-busiest long-distance rail route.
Stagecoach also runs South West Trains into Waterloo — where passenger satisfaction over delays stands at just 40% — and East Midlands Trains.
It saw revenues on its rail division shoot up 7.6% in the 40 weeks to February.
London bus revenues grew 9.8% “although some revenue was lost in January as a result of a 24-hour strike by bus drivers,” Stagecoach said.
The shares rose 2.4p to 340p.