Transport for London ‘in line for Tube bailout’
Urban transport operators including Tube operator Transport for London are in line for government bailout as the complete collapse in passenger numbers due to coronavirus raised questions over their survival.
The Financial Times reported that Whitehall officials said that emergency funding could be released by the end of the week following negotiations.
Passenger numbers have all but flatlined as a result of the government’s lockdown policy, which has limited travel for all but essential workers.
Tube operator TfL said that total revenue had dropped by over 90 per cent due to the policy.
It said that passenger numbers on the Tube had fallen 95 per cent, and by 85 per cent on the capital’s bus network.
Speaking to the BBC, London mayor Sadiq Khan said he was seeking state financial aid or else TfL would run out of money with which to pay staff.
He said: “We’re struggling. We are eating into our reserves. We are in conversation with the government with regards to supporting us through a grant.”
TfL described the current situation as the most serious financial crisis it had ever faced.
Local transport systems were not covered by the protections the government has already implemented to guard the UK’s transport operators.
Bus firms were given a £167m aid package, whilst rail franchise agreements were suspended for a six-month period.
The situation is similar around the country, with Greater Manchester mayor Andy Burnham warning that he could shutdown the city’s tram network imminently as it was hemorrhaging £1m a week.
Speaking to the media, Burnham said: “If there is no deal from the government in the way they have bailed out the bus and the rail sectors, we are going to face the very difficult decision soon of whether or not we have to mothball the Metrolink system.”
Authorities in Edinburgh, Sheffield, Liverpool and on Tyneside have all joined in with calls for government aid.
A Department for Transport spokesperson said: “We are aware of the challenges faced by light rail operators, and continue to work closely with the sector and local authorities on the best solution for passengers”.