Passengers at Brighton station in front of Thameslink train

New GTR contract to run to September 2021

The Department for Transport (DfT) has announced that GTR’s Emergency Measures Agreement (EMA), which ended on 20 September 2020, has been replaced by an Emergency Recovery Measures Agreement (ERMA).

GTR will operate under its ERMA until the end of its contract term in September 2021, with the potential for a further extension.

GTR’s ERMA, which generates a margin of up to 1.5 per cent, is a management contract with no exposure to changes in passenger demand or ancillary revenue, such as car parking and retail commission.

Go-Ahead’s other UK rail franchise, Southeastern, will continue operating under its EMA until October 2021, or March 2022 if extended.

Approximately 90 per cent of total Group revenues are generated through contracts where there is no direct revenue risk from changes in passenger demand.

David Brown, Go-Ahead CEO, commented:

“This contract reaffirms the Government’s recognition of the important role rail plays in driving economic growth and in connecting communities.  Independent passenger surveys have found that people who have recently travelled on our services found them to be clean, safe and reliable.  We look forward to welcoming more passengers back onto our trains.”

Patrick Verwer, GTR CEO, said:

“We welcome today’s announcement and the stability this new agreement brings for our colleagues, who continue to focus on providing a safe and reliable service as we welcome back more customers. Going forward, we will continue to work with our partners and stakeholders across the industry to help reconnect communities, improve our performance and ensure high levels of customer satisfaction.”

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