Job loss fears for troubled rail firm National Express

Feb 27 2009 by Adrian Pearson, The Journal

TROUBLED rail operator National Express is considering job cuts and reduced services despite announcing increased profits.

Unions have warned the rail company risked “cutting its own throat” by reducing ticket staff.

Bosses at National Express are believed to be in negotiations with the Government in a bid to lower the amount the rail company pays to run trains on the East Coast.

Rail experts have speculated that National Express may struggle to keep its £1.4bn franchise on the East Coast Main Line, linking the North East with London and Scotland.

And as a result of rising cost and a predicted fall in ticket revenue, the company said, it was now looking at a “reduction in headcount”.

But yesterday the business revealed that for the year 2008 it had made a pre-tax profit of £194.1m – up 9.7% on 2007.

National Express chief executive Richard Bowker said timetable commitments would be met but admitted the company was looking at changes to any services beyond the minimum required to meet the franchise agreement as he sought to bring down costs.