PRICING CONSTRAINTS

This presentation outlines the different sources of price constraints that the privatised British Rail (BR) will face as a result of competition, regulation and political pressures. It also explores the likely impact of each source of price constraint on different players in the rail industry. The sources of price constraints include: (1) on-rail competition, where competing operators offer passenger or freight services between the same locations; (2) intermodal competition from coach and air; (3) competition for contracts or franchises; (4) regulation of fares and charges, where competitive pressures are weak; (5) competition by comparison. Political pressure will be a key factor in determining fare constraints; the Government will want to: (1) avoid substantially higher fares or freight charges; (2) prevent a large increase in subsidy to the rail industry; (3) encourage bidders for franchises, and avoid early bankruptcies, especially of successful management buy-out bids. The impacts of price constraints on the following players are considered: (1) Railtrack; (2) passenger operating services, including InterCity routes, London commuting routes and regional routes; (3) freight services; (4) suppliers of equipment, rolling stock and various services to Railtrack. For the covering abstract see IRRD 865967.

  • Corporate Authors:

    IBC LEGAL STUDIES AND SERVICES LTD

    57-61 MORTIMER STREET
    LONDON,   United Kingdom  W1N 7TD
  • Authors:
    • Everett, J
  • Publication Date: 1993

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00668309
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Files: ITRD
  • Created Date: Nov 2 1994 12:00AM