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The marginal profitability of train services in London

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  • Harris, Nigel G

Abstract

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.

Suggested Citation

  • Harris, Nigel G, 1996. "The marginal profitability of train services in London," Transport Policy, Elsevier, vol. 3(1-2), pages 17-20.
    • Handle: RePEc:eee:trapol:v:3:y:1996:i:1-2:p:17-20
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