VRG management fees outlined

摘要

In a written answer given in the House of Commons on January 13, Transport Minister Stephen Hammond provided financial details of the first 16 weeks of Virgin Rail Group's management contract to operate the lnterCity West Coast franchise. Under what DfT termed 'a new franchise agreement' awarded on December 5 2012 (RB1428 p1), VRG is running 1CWC until November when a new direct award franchise agreement is expected to be signed. Under the current contract, Virgin West Coast is paid a management fee of 1% of revenue. DfT bears both revenue and cost risk.