Quote Originally Posted by Rjk View Post
It'd be interesting to see the financial implications of ending the franchise early.

To me it makes sense to be state run as there isn't competition on a day to day basis.

If i stroll down to Ponty station I can only get on a TFW train, therefore the market pressures that drive efficiency in a well functioning market just don't exist - so the advantage of the market over public ownership is evaporated.
The theory is that firms compete for franchises - but that's only once every 20 years, and the years in-between there's nothing.
It's been exactly the same with buses. Around the UK there are routes and areas that have such great demand that operators can compete and make a profit. Around South Wales that's certainly not the case. Operators avoid competition with each other as they lose income by competing on routes that don't provide the revenue.

Bus companies cut back on marginal routes but will spend and enhance the most profitable ones. Back in the days where it was publically owned, there were requirements to provide those marginal bus services, so people in remote or small places still had access to public transport. When bus operators trim these marginal routes, usually the local council end up offering them out to contract, often to less reliable operators who don't offer integrated tickets for people who need to use another bus afterwards.

Bus companies are happy to make decent profits on busy routes but they're also happy to ask for council money to continue routes that don't perform. That's not good for the passenger or the public purse.