APPENDIX 18
Memorandum submitted by Grand Central
Railway Company Limited
Grand Central has been watching with interest
the current inquiry into train fares, particularly in the light
of the recently announced fares increases.
We note that Grand Central's proposed simplified
structure, with reasonably priced fares for all, not just some
eye catching fares for a very few, attracted some comment, but
not of course from current industry players.
Grand Central would be pleased to make representations
to you and/or members of your Committee to re-assure you there
are simpler options, and to assist your understanding of why the
industry currently plays the revenue game in the way it does.
We particularly note ATOC's assertions that
only around 10% of tickets are "open and unregulated";
this of course obscures the point that in revenue percentage terms
they account for around 35-40%.
The main points of our offer are easily understood
fares and an instant acknowledgment if we don't offer what we
say, and a summary is below.
— All tickets prices shown are the
"most expensive" and unrestricted on Grand Central services.
— Standard class "open return"
with GNER from Sunderland—London £184, Grand Central
£60 (The GNER fares do not include the 8.8% increase announced).
— First class "open return" with
GNER from Sunderland—London £278, Grand Central £120
(The GNER fares do not include the 8.8% increase announced).
— Half price tickets for Senior Citizens
without the need to pre-purchase a railcard.
— Standing passengers will receive
a 50% refund on the price of their journey.
As with any new service proposition there are
many other benefits to our proposal, not least the fact that we
plan to re-introduce direct main line express links to London
to over 1.5 million people in the North, all of whom are ignored
by GNER, and to do all this at risk only to our own shareholders.
13 December 2005
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