Rail fares going up by up to 11 percent in 2009 whilst train companies enjoy record profits - 31st Dec 2008

As rail operators prepare to implement another round of inflation busting fares rises of between 6 and 11 per cent amid rising operating profits, RMT is demanding that the government seriously look at nationalising the rail network.

Season tickets, savers and standard day returns will rise by an average of 6 per cent from January 2009 whilst cheap day returns, long distance open, leisure and advanced tickets  will go up by an average of 7 per cent. Cross Country passengers face the biggest average rises of 11 per cent.

According to train operating companies these rises are in line with the UK government policy to reduce subsidy to the railway by 40 per cent between the financial year 2006/7 and 2013/14.
Passengers will be subjected to at least five more years of above inflation rises as part of a government plan to make passengers fund 75 % of the cost of running the railways by 2014. At present passengers fare fund 50 % of this cost.

Although the Retail Price Index is currently 3 %, and is predicted to fall to almost zero, the figure of 5 % from July 2008 was used to raise the train fares. July 2008 saw the highest oild prices in the recent history and since then they have fallen almost 70 %.

RMT general secretary Bob Crow said, “Passengers being told to fork out huge increases in fares and season tickets for overcrowded services have every reason to ask how the operators can rake off such huge amounts of their money as ‘profits’......  The government has used huge sums of public money to prop up and nationalise failing banks, but when it comes to the railways there is more than enough evidence to show that bringing them back into the public sector would leave taxpayers and passengers better off.....    It seems that the rail privateers want everyone else to tighten their belts so that their shareholders can keep their snouts in the trough – yet the government insists that the set-up delivers value for money”

Company                                       Fare rises                                              Half year Profits  

Arriva Group                                 6%, and  11%                                                  £14.8m

First Group                                   6%, and  9%                                                   £48.3m

Go-Ahead Group                           6%, and  8%                                                   £77.2m

National Express Group                 6%, and  7.4%                                                £39.6m

Stagecoach Group                         6%, and  7.2%                                               £31.7m