Britain extends Avanti West Coast contract; draws criticism from unions

Avanti Helium

20/03/2023 12:56

March 20 (Reuters) - Britain on Monday extended Avanti
West Coast's contract to run rail operations on routes including
Manchester, Birmingham and London, citing an "improvement" in
services, a move that drew criticism from labour unions.
    The contract extension to Avanti, which is majority owned by
London-listed FirstGroup  FGP.L  alongside minority partner
Italy state-owned Trenitalia, comes after the company was given
six months to improve through a short-term contract in October
after it cut services in August.
    Britain's Department for Transport said there had been "very
significant" improvements in services, including lower overtime,
more trains (to 264 from 180 per day on weekdays); and a steep
drop in cancellations (to 4.2% in early March versus nearly 25%
in August).
    "However, there is still more work to be done to bring
services up to the standards we expect, which is why over this
next six months further improvements will need to be made
by Avanti West Coast," Transport Secretary Mark Harper said.
    DfT extended the contract until Oct. 15 and talks regarding
the longer-term contract are ongoing, FirstGroup said. The
initial short-term contract was previously due to expire on
March 31. 
    FirstGroup CEO Graham Sutherland said the extension would
allow the company to focus on delivering on its "robust plans"
to enhance services.
    Avanti in August angered passengers and politicians when it
cut the number of trains it ran between London and Manchester by
a third in August due to driver shortages.
    Britain's largest rail union RMT condemned the extension and
called for the company to be stripped of its franchise.
    "It is, frankly, extraordinary - as well as very
disappointing, and discouraging for everyone working on
Britain's railway network - that the government is, yet again,
rewarding failure," said Mick Whelan, general secretary of train
drivers' union ASLEF.
    

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil
D'Silva)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))