Government Says State Control on Table for UK Rail Firm Avanti

The UK government said it’s looking at all possibilities for the struggling Avanti West Coast rail service, suggesting the line linking Britain’s biggest cities could be brought under state control.

(Bloomberg) — The UK government said it’s looking at all possibilities for the struggling Avanti West Coast rail service, suggesting the line linking Britain’s biggest cities could be brought under state control.

Driver shortages at Avanti, run by FirstGroup Plc with Trenitalia of Italy, have led it to cancel hundreds of services, reducing London-Manchester frequencies to just one an hour. It said last week that Managing Director Phil Whittingham, who blamed the disruption on unofficial strike action, would leave on Sept. 15.

Transport Minister Trudy Harrison said Wednesday that the withdrawal of Avanti’s contract, up for renewal next month, is under review, and the fact that the East Coast line, already under state direction, is operating effectively and with lower fares will be taken into consideration.

“All options are on the table” for discussions on how to proceed, Harrison said in response to a question in Parliament. “The information about those discussions is commercially sensitive at the moment.”

Taking Britain’s busiest intercity rail route under state control would be a controversial step for new Prime Minister Liz Truss after the Conservative government previously resisted pressure to renationalize the network, opting instead to replace franchising deals with simpler contracts as part of the biggest shakeup since privatization in the 1990s.

Avanti’s operating model relied on drivers working overtime on rest days, and since July 30 they have largely refused to do so amid a nationwide dispute over pay. Timetable cuts have led to overcrowding and delays, with the release of tickets days before the date of travel pushing up fares.

Harrison said the timing of Avanti taking over the West Coast service from long-time operator Virgin Trains just 16 weeks before the Covid-19 pandemic hit had exacerbated staffing problems. The firm is also looking to recruit more female drivers, who make up just 12% of the current tally, she added. 

Drivers union Aslef has rejected suggestions that it coordinated the overtime stoppages. Regardless of the cause of the change in working patterns, relying on overtime working is no longer sustainable, Harrison said. 

“Workers have been willing to work their rest days for something like 20 years,” the minister said. “They are no longer willing to work those rest days so we need to find solutions.”

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