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FirstGroup agrees new deals on TransPennine, South Western franchises
20th May 2021 08:37
(Sharecast News) - FirstGroup has agreed new contracts with the UK government for its South Western Railway and TransPennine Express train operating companies, the company said on Thursday.
The new deals - set to begin on May 30 this year, when the current Covid-19 emergency measures agreements end - have a two-year term to May 2023 with options to extend by up to two further years. The Department for Transport will "retain all revenue risk and substantially all cost risk" FirstGroup added.
The fixed management fee for company's 70% share of the First MTR joint venture for South Western Railway is £3.3m a year, with an opportunity to earn an additional fee of up to £9.9m - the maximum attainable performance fee.
For TransPennine Express, the fee was £2.3m with an opportunity to earn up to an extra £5.2m.
The new deals - set to begin on May 30 this year, when the current Covid-19 emergency measures agreements end - have a two-year term to May 2023 with options to extend by up to two further years. The Department for Transport will "retain all revenue risk and substantially all cost risk" FirstGroup added.
The fixed management fee for company's 70% share of the First MTR joint venture for South Western Railway is £3.3m a year, with an opportunity to earn an additional fee of up to £9.9m - the maximum attainable performance fee.
For TransPennine Express, the fee was £2.3m with an opportunity to earn up to an extra £5.2m.