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London alarm as Go-Ahead reports commuter slowdown
Robert Lea, Evening Standard15 Feb 2008
Alarm bells were ringing today over the slowdown in London's economy as latest figures from two of the capital's busiest commuter routes revealed a sharp reduction in growth.
Go-Ahead, which runs London commuter routes in a joint venture with SNCF of France, revealed that growth in the number of passengers on its Southern Railway network out of Victoria slowed to 6.1% in the six months to the end of December, compared with growth of 9.1% in the previous year.
Growth on its Southeastern network into London Bridge, Cannon Street and Charing Cross was 5.9% in the same period against 7% the previous year.
The latest figures could indicate the first effects of the credit crunch on City workers, or it could mean that passengers are baulking at paying above-inflation fare-price rises.
Southeastern commuters are being hit with rises averaging 3% over the Retail Price Index of inflation - increases of more than 7% a year - in Government-enforced increases to claw back money from building the Channel Tunnel high-speed link on which new Javelin commuter trains from Kent will run from next year. Fares on Southern have risen on average by more than 5%.
Go-Ahead chief executive Keith Ludeman warned about drawing early conclusions. "Since the end of the half-year and a soft Christmas, we have had strong year on year growth in January," he said.
Go-Ahead today said that half-year pre-tax profits dropped almost 4% to £45 million. The shares, down 20% in recent months, fell a further 7.5%, off 170p to 2065p, as the company warned that falling Government subsidies will mean rail profits will dive this year.
Reader views (1)
I used to travel by train into central London everyday and now share a car with three friends to avoid the crippling rail fares.
- Toby, Beckenham, 15/02/2008 15:26
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