THE MARGINAL PROFITABILITY OF TRAIN SERVICES IN LONDON.
economics - profitability, land use - impacts, mode - rail
Railways, Railroads, London (England), Economic impacts, Economic factors
London has railways run by three operators, but the level of train service offered varies considerably between them. This paper explores why, by using publicly-available data to examine a number of possible explanatory hypotheses. Even accounting for differing corporate objectives, demand levels, and the possibility of operational constraints, there does not appear to be a sound reason for the differences in service. It is therefore suggested that British Rail, the operator of most mainline rail services, has not been profit-maximising in the recent past. Ironically, the creation of a separate track authority, raising marginal track costs, may have moved mainline surburban services nearer to their financial optimum.
Permission to publish the abstract given by Elsevier, copyright remains with them.
HARRIS, NIGEL, (1996) THE MARGINAL PROFITABILITY OF TRAIN SERVICES IN LONDON., Transport Policy, Vol. 3, Issues 1-2, Pp. 17-20.