LONDON FARES, GERMAN PROFITS

RMT helpline 0800 376 3706 :: november/december :: RMTnews 10 New research by RMT has found that profits made by London Overground services could be used to cut fares for passengers by five per cent a year but will instead be used to subsidise rail services in Germany. The research was released on the first day of German State- owned Arriva taking over the operation of London Overground services on a seven year £1.5 billion Transport for London contract agreed with former London Mayor Boris Johnson. London Overground Ltd (LOROL)was launched nine years ago. With its London Transport branding, it is often portrayed as a public railway. However it is, in fact, a rail franchise which has been jointly operated by Arriva and MTR which is owned by Hong Kong Railways. This contract came to an end in November and Arriva takes sole charge of new contract. Between them Arriva and MTR were paid 10 per cent of all London Overground’s Passenger Income. According to LOROL, “10 per cent of passenger income is paid to the company through the operation of a revenue share with Transport for London. “Passenger income represents agreed amounts attributed to the London Overground services by the income allocation systems of the Railway Settlement Plan Limited, principally in respect of passenger receipts, based on detailed surveys of passenger flows. “The income is recognised in the period in which the passenger travel occurs,” it said. LONDON FARES, RMT reveals that profits that could cut fares in London used to subsidise rail fares and services in Germany