Stagecoach and DfT clash over cap and collar

摘要

In a trading update published on April 28, Stagecoach Group plc revealed that it had, that day, taken a dispute with DfT Rail over future franchise support payments to arbitration under rail industry dispute resolution rules. The dispute centres on the basis for calculating the revenue support provided under the 'cap and collar' scheme in franchise agreements.rnUnder cap and collar, a franchisee shares a proportion of a TOC's income above the revenue line in the franchise agreement with DfT, whose share increases as the percentage out-performance rises. This applies from the start of the franchise.