The railways were effectively nationalised in 2020. Since then they have been run as management contracts - with the franchisee being paid a flat rate by the DfT per train, and the DfT keeping the ticket revenue. Indeed, Thameslink, Southern and Great Northern, the largest franchise, had been a management contract as early as 2015.
The average profit margin was around 2% of face value, while around 60% went to network renewal. Under franchising, DfT set the price of 40% of tickets. The remainder, set by franchisees, were often cheaper advance offers.
The railways were effectively nationalised in 2020. Since then they have been run as management contracts - with the franchisee being paid a flat rate by the DfT per train, and the DfT keeping the ticket revenue. Indeed, Thameslink, Southern and Great Northern, the largest franchise, had been a management contract as early as 2015.
The average profit margin was around 2% of face value, while around 60% went to network renewal. Under franchising, DfT set the price of 40% of tickets. The remainder, set by franchisees, were often cheaper advance offers.