News Blog for the Essex Rail Users Federation - www.eruf.org
Sunday, 6 September 2009
Stagecoach To Pay £100m In Rail Deal
Stagecoach has agreed to pay £100m as a "change of control" payment to take over National Express' rail business. The payment to the Department For Transport is in exchange for an agreement that the government will not force Stagecoach to relinquish National Express' East Anglia and C2C franchises as "cross default" punishment for its failure to honour its £1.4bn East Coast contract.
In what seems a rather bizarre arrangement this seems a clear indicator that Stagecoach are close to taking over the National Express UK rail business, including NXEA.