In a new report, the Competition and Markets Authority (CMA) has called for rail franchising to be overhauled and possibly replaced by multiple operators running services on the same lines. This could lead to lower fares, greater incentives for rail operators to improve services and more effective use of network capacity. Increasing the number of open access services would generate “significant passenger, efficiency and wider economic benefits” as a result of competition between two large-scale train operators on key routes, according to the study.
A system of three or more licensed operators replacing franchises has “the potential to generate the strongest on-rail competition”, the report added. Britain’s three main intercity routes – the East and West Coast main lines and the Great Western route – have the greatest potential to benefit from competition, the study showed.
Further work would be required to decide how the licensing system would work.
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