The rail operator is in talks with the Department for Transport over changes to its franchiseOne of the country’s biggest rail operators is at risk of being renationalised because of crippling financial losses. South Western Railway admitted that its existing contract could be terminated within 12 months after strikes, timetabling problems and delayed track upgrades. It said it was in discussions with the Department for Transport (DfT) over changes to the franchise, with the possibility of a new short-term deal under revised terms. Alternatively, the existing contract may have to be torn up within a year, with services on the line being taken over by the government, it said. Writing in the operator’s accounts, the auditor Deloitte said that “material uncertainty exists and it may cast significant doubt on the company’s ability to continue as a going concern”.

Source: The Times January 07, 2020 17:03 UTC