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FirstGroup, Department for Transport agree termination fee for TransPennine Express
StockMarketWire.com
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Bus and train operator FirstGroup said it had reached an agreement with the Department for Transport on the termination fee payable for the TransPennine Express train operating company.
The Department for Transport, or DfT, and FirstGroup agreed the financial impact of the termination for TransPennine Express, or TPE, would require a further FirstGroup contribution of about £6 million, over and above the £42.5m already paid into the operating company.
Under the Emergency Recovery Measures Agreements, train operators and the DfT previously agreed to work out whether any payment was required to terminate the pre-existing franchise agreements, and if so how much, based on a pre-coronavirus trajectory financial model.
'The TPE agreement is the final termination agreement for the group's train operating companies and follows the agreements reached for a FirstGroup contribution on South Western Railway of £33.2m and of nil on the West Coast Partnership,' the company said.
'We welcome this agreement with the DfT, and are continuing to discuss a long-term National Rail Contract for TPE which will focus on passengers and operational performance, with a more appropriate balance of risk and reward,' it added.
At 8:04am: (LON:FGP) Firstgroup PLC share price was 0p at 58.5p
Story provided by StockMarketWire.com
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