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UK govt extends FirstGroup GWR emergency measures
1st Sep 2020 07:33
(Sharecast News) - Transport operator FirstGroup said the UK government had exercised its option to extend the Emergency Measures Agreement (EMA) for Great Western Railway (GWR) until at least June next year.
The company said on Tuesday the extension would apply on the same terms agreed in March when the Department for Transport (DfT) took on rail franchises amid the coronavirus crisis as the country went into lockdown and passenger travel collapsed with people working from home.
Under the EMA, the DfT waives FirstGroup's revenue, cost and contingent capital risk and GWR are paid a fixed management fee with the potential for a small performance-based fee.
As at the end of August 2020 FirstGroup had around £850m in free cash (before rail ring-fenced cash) and committed undrawn revolving banking facilities, stable with the liquidity level at the end of June.
FirstGroup, which runs GWR services from London's Paddington to Wales and the West Country, said the EMA would run to at least June 26 2021.
Train operators have been in talks with the government about further support for the industry in order to keep trains running and increase capacity as schools and businesses reopen.
The company said on Tuesday the extension would apply on the same terms agreed in March when the Department for Transport (DfT) took on rail franchises amid the coronavirus crisis as the country went into lockdown and passenger travel collapsed with people working from home.
Under the EMA, the DfT waives FirstGroup's revenue, cost and contingent capital risk and GWR are paid a fixed management fee with the potential for a small performance-based fee.
As at the end of August 2020 FirstGroup had around £850m in free cash (before rail ring-fenced cash) and committed undrawn revolving banking facilities, stable with the liquidity level at the end of June.
FirstGroup, which runs GWR services from London's Paddington to Wales and the West Country, said the EMA would run to at least June 26 2021.
Train operators have been in talks with the government about further support for the industry in order to keep trains running and increase capacity as schools and businesses reopen.